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One of the fastest growing industries is without doubt the offshore access industry. This growth is mainly possible because both market segments this industry serves are demanding more and more orders. The market consists of the offshore wind industry and the offshore oil & gas industry. This article will analyze both market segments in detail and what the impact of this all will be on the offshore access industry.
The Market
The offshore wind industry has been growing with rapid speed in the last decade. For example, in 2009 there was a growth rate of 54% in Europe (EWEA, 2010). The growth has been tempered down because of the credit crunch but analysts like Frost & Sullivan report that interest in wind power is rising, with new investment opportunities both in the onshore and offshore wind energy markets. Another favorable fact for the players in the offshore wind industry is that many wind parks are planned to be built in the near future. Germany for example has 40 projects of wind parks that will be constructed in the following years (Business Week, 2009).
The oil and gas industry is growing in an even more spectacular speed than the offshore wind industry. Offshore oil production has risen by just over a third since 1991 and is forecasted to continue to rise at about the same rate, reaching 35 million bpd in 2011. However, offshore gas production has more than doubled in the same period, to 867 Bcm in 2006, or 14.9 MMboe/d. Furthermore, it is forecasted to almost double again by 2011. Such steady increases in oil production and surging gas production will drive expenditures from $219 billion in 2006 to over $275 billion by 2011 (All Business, 2007). Currently, there are opportunities at the coast of Brazil where massive oil discoveries were made and therefore a great demand for offshore access solutions is arising. The most important criteria for the offshore oil & gas industry is offshore safety. There have been accidents in the past, and this can inflict severe damage on reputation of the company in question.
The Future of the Offshore Access Industry
It can be concluded that the industry is in the middle of a growth stage. The market has a variety of players who differentiate within the characteristics of their services. So far, there is no superior solution that outranges the others (e.g. helicopter, jack up platform, direct access with small boats).
The market in general is growing faster than the number of actors who provide solutions for safe work and transfer in the offshore business. This results in the fact that each company in this field of business has the opportunity to enlarge their market share easily. Companies are improving their service, while they try to maintain their market share and new entrants try to strengthen their market position. This shows that the market is not close to reach maturity yet but is rather located in the growth stage with an upward trend. Therefore, it would be a good idea to invest in certain companies in this industry, or search a job at an offshore employer.
Delays or unreliability are big issues in this industry as profits are only made when the offshore facilities run properly. Offering quickly available systems worldwide while keeping high standards at minimum price will be the biggest challenge in a mature market.