Global Floating Production System (FPS) Market (2019 Edition)

Date: 1 September 2019

According to a research report published by Azoth Analytics in August 2019, the Floating Production System Market was valued at USD 13.7 Billion in the year 2018. Key factors responsible for demand of Floating Production System includes increase in deep water drilling activities and rising number of offshore projects. Since, last few years, it has been experienced that the demand of Floating Production System has been hampered on account of low fresh investments in Oil & Gas Upstream segment. Prime reason for downfall in investments is due to decline in crude oil prices. As the prices of crude oil has again start moving upwards and showed a stable trend, it is expected that the halted projects and new projects will start in future which will drive the market of Floating Production System in forecasted period.

According to the Azoth Analytics Research Report titled “Global Floating Production System (FPS) Market (2019 Edition): Forecast to 2024” Americas region currently leads the floating production system market owing to considerable investments planned in offshore deep water and ultra-deep water drilling activities. 

Floating Production System is playing a significant role as after several years of cutbacks, oil companies are poised to develop new offshore fields. According to recent research study, spending on offshore oilfield services will rise by 6% in 2019. Also, most of the oil and gas demand comes from transportation sector where oil continues to face the weakest competition from alternative fuels. Increased digitalization, standardization and use of remote or autonomous operations will continue to bring cost savings to the industry.

Also, improvement in oil prices has led the companies to invest more and more in exploration and production of oil and gas from offshore fields. Technological advancements in floating production system includes 4D Seismic technology and Blockchain technology. The industry’s increasing acceptance and application of 4D seismic techniques in both exploration and production results in minimization of drilling risk and maximize the return on investment. Moreover, Blockchain Technology has become a trend in oil and gas industry because it can significantly improve the management level, efficiency and data security of oil and gas industries. At present, Europe and Asia have the fastest pace of developing the application of Blockchain in oil and gas industry.