Floating Production Storage and Offloading Industry Report by Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices

The global Floating Production Storage and Offloading market reached a value of about USD 29.81 billion in 2021. The industry is projected to grow at a CAGR of around 11.7% in the forecast period of 2022-2027 to reach a value of about USD 57.90 billion by 2027.

The global Floating Production Storage and Offloading industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The growing rate of exploration activities globally is primarily driving the market's growth. Latin America is the highest category spender by region, driving the demand for the Floating Production Storage and Offloading industry.

Industry Definition and Segmentation

Floating production storage and the offloading unit are floating vessels placed near an offshore oil and gas sector for hydrocarbon production, processing, and storage. FPSOs are either converted oil tankers or vessels explicitly designed for the purpose. The Floating Production Storage and Offloading industry report comprises segments by region (North America, Europe, Asia Pacific, the Middle East, Africa, and Latin America).

Latin America is Driving the Growth of the Industry

Latin America holds the largest share in the industry due to the increased expenditures to support energy infrastructure expansion and increased demand for offshore oil and gas production in countries like Mexico and Brazil. Furthermore, the enormous assets planned upstream into deep water deposits hydrocarbons assist in the region's market expansion. Due to increased oil and gas activity and enough government backing, Brazil is expected to emerge as a significant FPSO market in this area.

The industry is being propelled by the growing focus on offshore exploration and production operations and rising exploration in deep and ultra-deepwater. Furthermore, the discoveries of deepwater resources offshore in regions like Africa, Brazil, and Guyana are further propelling the industry. In addition, the reduced transportation costs and time to transfer crude oil and natural gas directly from offshore production facilities to end-user sectors such as gas liquefaction plants and refineries are boosting the industry's expansion. Also, the growing investments in the oil and gas industry to explore deepwater properties. The Higher oil prices are likely to impact the market positively.

However, factors such as environmental concerns and costs associated with intervention operations are likely to hamper the industry's expansion.

Best Procurement Practices

The global Floating Production Storage and Offloading industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by central global Floating Production Storage and Offloading regions, such as engagement models and contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

The processing of oil and gas is referred to as production. Seabed wells generate hydrocarbons delivered to the FPSO through flowlines and risers. The hydrocarbons are subsequently split into oil, gas, water, and contaminants at the FPSO's production facilities. Flowlines transport hydrocarbons from a subsea well to the surface. Risers are designed for vertical movement and can be flexible or stiff. This is the part of the line that runs from the seabed to the surface. The oil is refined and then transported to cargo tanks in the vessel's double hull. Transferring the acquired material to other transfer conduits is referred to as offloading. Subsequently, crude oil is transported from the vessel to tankers and pipelines headed ashore. The gas is piped to the beach or recycled back into the field to boost output.

Growing Initiatives by the Industry Players, Further Driving the Floating Production Storage and Offloading Market

The industry is being aided by the ability to float production storage and offloading without a permanent structure. Furthermore, they are particularly appropriate for adverse weather circumstances since they have detachable turret systems that may be withdrawn during an emergency and reattached to resume operations, further boosting the industry's growth. The rising energy consumption and the need for more efficient production and storage technologies will aid market expansion. Furthermore, the increasing concentration of major companies on R&D activities and new product development will likely benefit the market's growth.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Floating Production Storage and Offloading Industry Report

• SBM Offshore N.V.
• MODEC Inc.
• BW Offshore Limited
• Bumi Armada Berhad
• Teekay Corporation

Market Landscape

The leading players are presently focused on product innovations, mergers and acquisitions, new advancements, joint ventures, collaborations, and partnerships to improve their market position in the worldwide floating production storage and offloading (FPSO) market. Market participants may benefit greatly from advancements in production and unloading technology.

Key Initiatives by Companies

• SBM Offshore debuted Float4WindTM, its innovative floating wind energy solution, on March 30. SBM Offshore's revolutionary offshore wind floater technology, Float4WindTM, is the second phase of the company's long-term plan to support the energy transition.
• Teekay Offshore Partners L.P., a provider of offshore oil production and storage vessels for the offshore oil and gas sector, changed its name to Altera Infrastructure L.P. on Tuesday, effective March 24, 2020. The action follows Brookfield Business Partners L.P.'s recent acquisition of the firm.