COVID-19 Outbreak: Jackup Rigs Market - Global Industry Report, 2027

Jackup Rigs: Introduction

Drilling rigs are used in offshore exploration such as deep water, shallow water, and ultra-deep water.
Seven different types of drilling rigs are currently used for offshore operations such as jackup rigs, semi-submersible rigs, drill ships, and others. Jackup rigs are offshore rigs equipped with legs that descend to the seabed to form a foundation to support the drilling platform.
Jackup rigs are a type of drilling rigs known as mobile offshore drilling units (MODUs). The primary advantage of the jackup design is that it offers a steady and relatively motion-free platform in the drilling position and mobilizes quickly and easily.

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Key Drivers & Restraints of Jackup Rigs Market:

Rise in demand for oil and gas due to industrialization, urbanization, and population growth is driving the drilling market across the globe. This, in turn, is boosting the jackup rigs market.
Increase in exploration and new discovery of oil and gas deposits in deep and ultra-deep water are fueling the market. In January 2019, BP announced a discovery of more than 1 billion barrels of oil in its Thunder Horse field in the Gulf of Mexico. These discoveries are likely to spark long-term drilling and exploration operations over the coming years, leading to a steady rise in the demand from the global jackup rigs market over the forecast period.
Furthermore, rise in investments in the oil & gas sector is boosting the demand of jackup rigs. For instance, in April 2017, Eni an Italy-based company signed a memorandum of understanding (MoU) with state-owned Oman Oil Co. (OOC) to explore the Sultanate’s only offshore block for oil & gas reserves, in partnership with OOC subsidiary Oman Oil Company for Exploration & Production (OOCEP).
High cost of drilling projects and implementation of stringent government regulations on offshore drilling are projected to hamper the market.

Shallow Water Depth Segment to Offer Attractive Opportunities:

The global jackup rigs market can be segmented based on type, operating depth, and region.
Based on type, the jackup rigs market can be bifurcated into independent leg type and mat type jackups. The independent leg, usually consist of three legs with lattice construction, while the legs in the mat type jackup are attached to a very large mat that rests on the bottom of the ocean. The choice of rig depends on the conditions of the bottom of the ocean and weather general conditions and variability.
In terms of operating depth, the market can be segmented into shallow water and deep water. The shallow water segment dominates the market. Jackup rigs are largely preferred for waters depth up to 500 feet.

North America expected to hold Lion’s Share in the Global Jackup Rigs Market:

Based on region, the global jackup rigs market can be segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.
North America dominated the global jackup rigs market in 2017. This trend is projected to continue during the forecast period due to the discovery of shale reserves in the U.S. and presence of a large number of private oil companies in the region.
According to General Electric Company’s Baker Hughes Inc., the oil rig count in the U.S. increased by approximate 42% in 2017 compared to that in 2016 due to the recovery in crude oil prices.
Middle East & Africa is a major producer of oil in the world. Offshore developments and discoveries, particularly in the Red Sea region, by countries such as Qatar, the UAE, and Saudi Arabia are anticipated to drive the jackup rigs market in the Middle East.
The market in Latin America and Asia Pacific is estimated to expand at a considerable pace during the forecast period. Rising demand for energy and increasing investment in offshore exploration activities are expected to drive the market during the forecast period.
Asia Pacific is among the largest consumers of oil & gas. This demand is projected to lead to more exploration and production activities in the region.

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Key Players Operating in the Jackup Rigs Market:

Demand within jackup rigs market is highly concentrated with top companies accounting approximately 45-50% of the market. Few of the key players operating in the jackup rigs market include