The deepwater and ultra-deepwater drilling refers to drilling activities below 4000 ft ocean level. There is no fix parameter for the depth of drilling, it differs from country to country. Constant advancement in technology of the drilling has given an edge to the oil and mineral exploration in the ocean. Deepwater and ultra-deep water drilling need specialized rigs to perform activities. The capital involves in deepwater and ultra-deepwater drilling accounts for more than two-thirds of entire total capital expenditure.
World economy plays an important role in the growth of the deepwater and ultra-deepwater drilling sector. The global deepwater and ultra-deepwater drilling market was booming before 2005, several new development and advancement taking place in the market. The investors were getting good return on their investment, thanks to increasing demands for crude oil across the globe.
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Significate Rise in Energy Demands to Offer Lucrative Gains to Market’s Growth
Nonetheless, the plummeting world economy had an adverse impact on the growth of the global deepwater and ultra-deepwater drilling market. This in a way collapsed the investments, thus leading to a havoc on the deepwater and ultra-deepwater offshore rig market. Those with the heavy investment in the sector were left clinging on by their fingertips.
Presently, the world economy is at recovering state and hence there is a sign of relief for those operating in the global deepwater and ultra-deepwater drilling market. Those decided to stay firm in the turbulence will be benefiting from the recovery.
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Further factors such as industrial developments across the globe is increasing the demands for energy. Thus governments across the globe are taking initiatives to improve energy security by increasing oil and gas production. All these factors are expected to benefit deepwater and ultra-deepwater drilling market in the coming years.