Offshore projects are highly capital intensive and thus, players in offshore market are constantly striving for ways to optimize their production levels, but at economical rates. Subsea manifolds as such are being used by offshore exploration and production companies to boost oil production in oil fields in a cost effective manner. The subsea manifolds are thus extremely vital for the drilling activities in the offshore hydrocarbon reserves. Additionally, subsea manifolds are vital for deep water and ultra-deep water reservoirs of oil and gas with high pressure and high temperature conditions.
The depleting production of shallow water fields is a major driving factor behind the growth of the global subsea manifolds market. The rising deep-water discoveries in North America, Africa, Asia Pacific, South & Central America, and Europe are also boosting the demand for subsea manifolds.
Uncertainty in Crude Oil Pricing Restrains Subsea Manifolds Market
The price of crude oil has always been subjected to change every now and then. The fluctuations observed in the pricing of crude oil is high and it also affects the drilling and exploration activities carried out by operators. This is because the increase in crude oil price benefits the profits margins of E&P companies and decrease in the price of crude oil decreases the profit margins earned by them. Thus, there are significant risks associated with the uncertainty of crude oil prices, which impacts the global subsea manifolds market.
Europe to Lead in the Subsea Manifolds Market
The U.K. and Norway are major producers of oil and gas in Europe. However, the region has started witnessing a decline in the production of oil owing to depleting energy sources in the North Sea. However, the discovery of hydrocarbon resources in small marginal reserves in the U.K. and Norway has led to a significant demand for subsea manifolds.
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