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North Sea Oil and Gas Upstream Market - Growth, Trends, and Forecasts (2023-2028)

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  • 90 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 5120303
The North Sea oil and gas upstream market is projected to register a CAGR of around 3 % during the forecast period.

The market was negatively impacted by the COVID-19 pandemic in 2020. Presently, the market has reached pre-pandemic levels.

Key Highlights

  • A 40% reduction in the offshore drilling cost is expected to drive the growth of the North Sea oil and gas upstream market during the forecast period.
  • On the other hand, the increasing usage of renewable sources to meet energy needs will likely restrain the North Sea oil and gas upstream market.
  • A large amount of remaining oil and gas reserves in the region, which are expected to be exploited for several more decades, are expected to create ample opportunities for the North Sea oil and gas upstream market in the future.
  • The United Kingdom has several projects in the pipeline, which may help the country dominate the North Sea oil and gas upstream market during the forecast period.

North Sea Oil & Gas Upstream Market Trends

Shallow Water Segment Expected to See Significant Market Growth

  • Shallow water is the water displaced by the movement of a vessel constrained by surrounding banks. The result is usually an increase in the water level ahead of the ship and a decrease in the water level behind.
  • Due to fewer capital investments and inflated oil prices, the shallow water segment held a significant market. Most oil and gas upstream operations in the North Sea are done by Norway and the United Kingdom. More than 85% of the oil and gas production in the United Kingdom comes from shallow water in the region.
  • The UK oil and gas sector is dominated by production from offshore areas, which account for virtually all the oil and gas production of the country. Presently, the UKCS (the United Kingdom Continental Shelf) production comes from more than 300 small fields and much more technically complex fields.
  • In 2021, natural gas production in the United Kingdom decreased by 17.2%. In the same year, the natural gas production was 32.7 billion cubic meters compared to 2020, which was 39.5 billion cubic meters.
  • Therefore, due to such factors, the shallow water segment is likely to dominate the North Sea oil and gas upstream market during the forecast period.

United Kingdom to Dominate the Market

  • The United Kingdom has the potential to become one of Europe's top oil and gas producers, with around 111 oil and gas projects under construction, 83 of which are upstream contracts anticipated to be completed by 2025. The majority of these projects are held by the offshore portions of the North Sea. Thus, the British North Sea is anticipated to become the focal point for future drilling operations in the nation, particularly for gas extraction.
  • Another gas project anticipated in the country is the Evelyn gas project, located in block 21/30f, license P1792, in the central North Sea. It is currently in the development phase, being developed as a subsea tie-back to an FPSO platform by Tailwind Energy. The field is expected to start production by the end of 2022.
  • The Rosebank project, located around 120 km from the Scottish Shetland Islands, is one of the key upcoming projects in the country. The players in the field received a three-year extension for the production, which is estimated to hold 240 million barrels of oil and gas. The final final investment for the project is to be decided by the players in the first half of 2023. The field is anticipated to produce around 3.8 million standard cubic meters of gas per day.
  • In April 2022, the North Sea Transition Authority (NSTA) announced that a total of 890 million barrels of these resources will be sanctioned as early as next year. To ensure the UK supply resilience, the regulator expects operators to swiftly complete projects in accordance with its effective net zero tests.
  • In 2021, oil production in the United Kingdom decreased by 16.5%. In the same year, the oil production was 40.9 million tons compared to 2020, which was 49.0 million tons.
  • Hence, due to such factors, the United Kingdom is expected to register significant growth in the North Sea oil and gas upstream market during the forecast period.

North Sea Oil & Gas Upstream Market Competitor Analysis

The North Sea oil and gas upstream market is moderately fragmented. Some of the key players include (in no particular order) Equinor ASA, ExxonMobil Corporation, Royal Dutch Shell PLC, BP PLC, and Total SA.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
4.1 Introduction
4.2 North Sea Oil and Gas Production Forecast, till 2025
4.2.1 Crude Oil Production Forecast, in Thousand Barrels Per Day
4.2.2 Natural Gas Production Forecast, in Million Ton Oil Equivalent
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 North Sea Active Rig Count, till 2020
4.6 Market Dynamics
4.6.1 Drivers
4.6.2 Restraints
4.7 Supply Chain Analysis
4.8 Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes Products and Services
4.8.5 Intensity of Competitive Rivalry
5.1 Water Depth
5.1.1 Shallow Water
5.1.2 Deepwater
5.2 Geography
5.2.1 United Kingdom
5.2.2 Norway
5.2.3 Other Countries
6.1 Mergers, Acquisitions, Collaborations, and Joint Ventures
6.2 Strategies Adopted by Key Players
6.3 Company Profiles
6.3.1 Equinor ASA
6.3.2 ExxonMobil Corporation
6.3.3 Royal Dutch Shell PLC
6.3.4 BP PLC
6.3.5 Eni SpA
6.3.6 Total SA
6.3.7 UK Oil & Gas PLC
6.3.8 Schlumberger Limited
6.3.9 Transocean Ltd

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Equinor ASA
  • ExxonMobil Corporation
  • Royal Dutch Shell PLC
  • BP PLC
  • Eni SpA
  • Total SA
  • UK Oil & Gas PLC
  • Schlumberger Limited
  • Transocean Ltd