North Sea Region Oil & Gas Industry

North Sea Region Oil & Gas Market Analysis

The North Sea Region Oil and Gas Market is expected to register a CAGR of greater than 3% during the forecast period.

• The upstream segment is likely to dominate the market during the forecast period due to the increasing exploration and production activities.
• Advancements in the deepwater and ultra-deepwater drilling activities in the region like Norway, the United Kingdom, and increasing primary energy consumption are expected to create a significant opportunity for the market players in the coming years.
• Norway is expected to dominate the market, owing to the increased upstream activity in the country to compensate for the country's declining fields elsewhere.

North Sea Region Oil & Gas Market Trends

Upstream Sector to Dominate the Market

• After the oil price crisis in 2014, during 2014-16, the rig count, both onshore and offshore, declined significantly. But the period of 2017-2018 was characterized by the recovery in the oil price, resulting in significant recovery in onshore rig count. The offshore activity generally has longer lead times. Also, given the volatility in oil prices, combined with high CAPEX requirements for offshore projects, the offshore drilling activity did not recover until 2019.
• The offshore operators have committed to significant investments in field developments, and there have been significant discoveries recently in the region. Norway saw a total oil discovery of 520 million boe from January 2019 to November 2019.
• Amidst the reducing reserves in the North Sea, drilling activity is on ever high, given the attempts to find more oil and gas in deeper waters. Other countries like the Netherlands, Norway, and the United Kingdom are increasing their drilling activity every year in search of more oil and gas, thus acting as a major driver for this market.
• The region's largest oil and gas produced Norway has not seen much growth in its production rate in recent years and is actively developing new offshore fields to boost up production.
• As the crude oil price is expected to recover in the coming years, investment in the oil & gas industry is expected to grow significantly and bring several projects online, thereby driving the North Sea region oil and gas market.

Norway to Dominate the Market

• Norway is expected to maintain its dominance in the region during the forecast period, the increased pressure on oil & gas companies to discover new oil and gas reserves to compensate for reducing hydrocarbon production from existing and aging fields is expected to drive the market.
• Norway's oil and gas industry is now back on its feet since 2018. Oil companies have increased their spending for the first time in 2018, since 2014. As of 31 December 2018, there were 85 discoveries where the licensees have yet to submit a PDO to the government. The total investment required to develop the whole portfolio is estimated to be in the order of NOK 400 billion in 2018 value.
• In 2019, Norway drilled more wells than ever, around 130 wells, out of which 55 were for exploratory drilling in a bid to find new oil & gas fields to compensate the country's declining oil & gas production. Drilled wells numbers saw a rise of 16% compared to 2018.
• The country also have highest no of active rig count in the region, averaging at 17 offshore rigs in 2019.
• The new market conditions forced the industry to cut cost and improve operational efficiency, which, in turn, made several unprofitable projects feasible. This trend is expected to increase the oil and gas industry market in the country.

North Sea Region Oil & Gas Industry Overview

The North Sea region oil and gas market is fragmented. Some of the key players in this market include Transocean Ltd, Gassco AS, BP Plc, Baker Hughes Company, and Equinor ASA.

North Sea Region Oil & Gas Market Leaders