July 21, 2020
According to the research report titled ‘Global Floating Production Storage and Offloading (FPSO) Market Size study with COVID-19 impact, by Propulsion (Self-Propelled, Towed), by Hull Type (Single Hull, Double Hull), by Usage (Shallow Water, Deepwater, Ultra-Deepwater), by Type (New-Build, Converted) and Regional Forecasts 2020-2026’, available with Market Study Report LLC, global floating production storage and offloading (FPSO) market generated revenues worth USD 19.5 billion in 2019 and is expected to grow with a CAGR of 6% during 2020-2026.
Notably, FPSO (floating production storage and offloading) is a floating vessel that is majorly used by offshore oil & gas industries for producing and processing hydrocarbons as well as for storing oil. FPSOs are widely deployed in frontier offshore provinces since they are easy to install and do not require local pipeline transportation for exporting oil.
Rising adoption of oil & gas resources coupled with shifting focus towards offshore production and exploration activities are major factors driving the growth of global floating production storage and offloading industry. As a matter of fact, the IEA (International Energy Agency) stated that the daily demand for crude oil was recorded at 96.2 million barrels in the year 2016, which reached 100.6 million barrels in 2019.
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Similarly, according to Independent Petroleum Association of America, the U.S. export of LNG accounted for 3.6 tcf (trillion cubic feet) in the year 2018 and is estimated to touch 4 tcf by the year 2024, which in turn is fostering the demand for FPSOs. Technological breakthroughs in subsea technologies are also aiding the market expansion.
The emergence of COVID-19 pandemic has plunged the demand for oil & gas resources. It has also led to overabundance in worldwide oil markets resulting in shortage of storage capacities. Hence, several manufacturers are focusing on lowering their respective productions by shutting down oil rigs in order to prevent any financial losses, which in turn is negatively impacting the floating production storage and offloading market outlook. Additionally, high investments required for constructing FPSOs coupled with fluctuating oil & gas prices may act as hindering factors to the overall market expansion.
Considering the geographical landscape, North America FPSO market is expected to register substantial growth during the estimated timeframe, primarily driven by inclination towards offshore oil & gas production and surging investments towards energy infrastructure. On the other hand, East Africa and South America markets are slated to showcase high CAGR in the ensuing years. Presence of huge oil & gas reserves in these regions in tandem with favorable regulatory scenario for expansion of O&G industry are favoring the market outlook.
Chevron Corporation, Total S.A., Petróleo Brasileiro S.A., Exxon Mobil Corporation, BW Offshore Limited, Royal Dutch Shell PLC, Teekay Tankers Ltd., Bluewater Energy Services B.V., SBM Offshore N.V. and Bumi Armada Berhad are the key participants in global floating production storage and offloading market.