SURF (SUBSEA UMBILICALS, RISERS, AND FLOWLINES) MARKET ANALYSIS

Market Challenges And Opportunities

Drivers

Increasing demand for oil and gas backed by increasing exploration and production activity in deep and ultra-deep water depths have boosted growth for the global SURF (subsea umbilicals, risers and flowlines) market. For instance, according to the U.S. Environment Impact Assessment (EIA) report in January 2022, crude oil Producers in Alaska added a substantial new volume of proved natural gas reserves in 2020. The annual total of proved natural gas reserves in Alaska increased in 2020 by 27 Trillion cubic feet (Tcf) quadrupling the state’s total from 9 Tcf to 36 Tcf.

Increasing demand for oil and gas coupled with increasing deep-sea developments has facilitated growth in the market for SURF (subsea umbilical, riser and flowline). Increasing demand for using capital intensive techniques in unconventional sources, and increase in deep water explorations to increase oil productivity has further accelerated SURF installations in the offshore oil and gas production projects.

Market Restraints

The decline in crude oil prices over the past few years stands as a restraint in the growth of the global SURF (subsea umbilicals, risers and flowlines) market. According to the U.S. impact assessment report in January 2022, the proved reserves of the U.S. crude oil and lease condensate declined 19%, from 47.2 billion barrels to 38.2 billion barrels at the end of 2020. Proved reserves of crude oil decreased 8.4 billion barrels in 2020, and proved reserves of lease condensate (produced from natural gas wells) decreased by 560 million barrels. The decline in the crude oil reserves is hampering the overall market growth.