Subsea Umbilicals, Risers and Flowlines (SURF) Market Analysis

Subsea Umbilicals, Risers and Flowlines Market Analysis

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The shallow subsea umbilicals, risers and flowlines market accounted for the leading position across the industry and is anticipated to witness substantial growth owing to accelerating capital expenditure in exploration and production activities. The increasing demand for oil and gas from several industries including refineries and petrochemical will further drive the industry growth. For instance, as per the CEIC, the oil consumption in the U.S. grew to 19.14 million barrels per day in 2022 from 18.78 million barrels per day in December 2021. Moreover, growing number of discoveries and exploration of marginal oil reserves along with technological enhancement in system design to increase the operational efficiency will propel the industry landscape.

The deep-water SURF market is set to observe significant momentum owing to the presence of oil fields, production of natural gas and oil along with rising investments in deep and ultra-deep hydrocarbon fields. For instance, according to the U.S. Energy Information Administration (EIA), the U.S. accounted for approximately 15% of the overall crude oil production and around 2% of total dry natural gas production in 2021 were derived from offshore oil and natural gas production in the Federal Gulf of Mexico. Moreover, growing investments across ultra-deep offshore oil fields together with increasing focus to limit dependency on imported energy resources are some of the prominent factors creating favorable outlook for the deep-water SURF market.

The umbilical SURF industry is set to witness substantial growth owing to the positive outlook for deepwater and ultra-deepwater drilling activities and the ability of these systems to offer cost-effectiveness, reliability, and the capability to transmit chemical fluids and electric signals. For instance, in September 2022, Saipem secured two contracts worth approximately USD 1.07 billion or EUR 1 billion for the Baleine Phase 1 Project in the Ivory Coast. The project involves developing an offshore oil and gas field at a water depth of 1,200 meters. The contracts encompass EPCI activities for SURF along with the construction of an onshore gas pipeline for distribution grid connection. The company’s flagship vessel FDS2 will be responsible for the offshore installation of flexible risers, lines, and umbilicals. Moreover, the implementation of stringent government regulations aimed at ensuring safety during deep-sea underwater operations will further contribute to the growth of the industry.

Middle East & Africa subsea umbilicals, risers and flowlines market was estimated at over USD 2.1 billion in 2022 and is set to witness a significant momentum owing to the increasing investments in the exploitation of new crude oil discoveries and a positive outlook for the development of unconventional reserves. Growing emphasis on digitalization and automation of drilling operations aimed at enhancing crude oil production rates, introduction of government policies and regulations, and the accelerating demand for energy resources will positively influence fuel the industry growth. The region's extensive offshore oil and gas reserves, ongoing exploration and production activities, and the presence of established oil and gas companies will further proliferate the business dynamics.