Global Information Inc. would like to present a new market research report, ""Drilling Products & Services (US Market & Forecasts)" by Freedonia Group.
New legislation may affect demand for offshore drilling products
New offshore safety requirements and crucial legislative activity was quickly enacted in the aftermath of the Deepwater Horizon disaster in the Gulf of Mexico, which occurred in April of 2010. Prior to this catastrophe, the Gulf of Mexico made up over $5 billion of 2009 revenues for drilling products and services. The new regulations "may restrict short-term demand for offshore drilling products and services. However, the drilling products and services market is forecast to benefit over the longer term based on the implementation of more stringent safety standards, which will likely promote demand for new equipment."
US demand for drilling products and services is projected to reach $44.4 billion in 2014, expanding by 8.1% annually through the forecast period. The Freedonia Groups new report expects advances in this sector to be supported by an expected recovery in domestic oil and gas drilling activity "as oil prices stabilize at a relatively high level and the US aims to reduce its reliance on foreign sources of energy." Additionally, shale gas will be a source of crucial growth opportunities as it grows in significance as a domestic source of natural gas.
©2010 by The Freedonia Group, Inc.
|US DRILLING PRODUCTS & SERVICES DEMAND
|% Annual Growth
|Drilling Products & Services Demand||3211||4000||4770||4.5||3.6
|Equipment & Consumables||1311||1530||1730||3.1||2.5