ID: MRFR/E&P/1996-HCR | September 2022 | Region: Global | 110 pages
Impact of COVID-19 on the Global Offshore Drilling Rig Market
The COVID-19 pandemic has majorly impacted the business growth of most of the countries across the world. Additionally, the virus is in the process of drowning the global economy. Several countries are dealing with the life-threatening COVID-19 and following a partial or total lockdown to curb the spread of the virus. The spread of the pandemic in China, which is gradually expanding in all the regions of the world, has drastically drop down the demand and price of crude oil. This has significantly restricted the growth of the global market. Moreover, according to the study conducted by EIA, there is a significant decrease in the demand for liquid fuels during the first half of 2020, owing to the pandemic travel restrictions and disruptions to the business. The significant impacts of COVID-19 are expected to occur in the second quarter of 2020.
The various environmental issues and strict government regulations are some of the major concerns for the growth of the offshore drilling rigs market. The governments in several affected countries have already announced the shutdown and are mandating the public to maintain social distancing norms. The disrupting effects of COVID-19, which has forced the government to change the regulations, has affected the market growth. The shutdown of the businesses owing to the lockdown and closure of factories resulted in the delays in the offshore projects, which is hampering the growth of the offshore drilling rigs market.
FIGURE: WORLD CRUDE OIL AND LIQUID FUELS PRODUCTION
According to the study conducted by EIA, OPEC crude oil production is expected to drop down below 24.1 million b/d in June. It is estimated that if the OPEC production of crude oil drops to less than 24.1 million b/d than it is anticipated to be the last level of production since March 1995. OPEC production of crude oil is expected to increase in July 2020 in response to the increasing prices and demand for oil. The study says that OPEC production capacity is expected to average 5.8 million b/d during the third quarter of 2020. In the second half of 2021, OPEC production is expected to increase over an average of 28.5 million b/d. In most countries, various oil fields and export ports are shut during the lockdown, which resulted in no production from January.
Source: Primary Experts, Secondary Sources and MRFR Analysis
Source: U.S. Energy Information Administration