Rising Demand for Production of Hydrocarbons and Storing Crude Oil using Floating Production Storage and Offloading Systems is Boosting the Floating Production Storage and Offloading Market
The global floating production storage and offloading market accounted for USD 20.63 Billion in 2020.
FPSO is a floating production system that receives fluids (crude oil, water, and a host of other things) from a subsea reservoir through risers, which then separate fluids into crude oil, natural gas, water, and impurities within the topsides production facilities onboard. Crude oil stored in the storage tanks of the FPSO is offloaded onto shuttle tankers to go to market or for further refining onshore.
Floating production storage offloading (FPSO) system is also a ship-shaped vessel used for producing hydrocarbons and storing crude oil. An FPSO vessel is designed to receive hydrocarbons produced from its wells, nearby platforms, or subsea equipment. It has equipment on deck to process the hydrocarbons. It also stores the oil until it can be offloaded onto a shuttle tanker or, less frequently, transported through an export pipeline. FPSOs are often the preferred concept for frontier regions where there is no local pipeline infrastructure to export oil. Moreover, the COVID-19 pandemic showed a major setback in the floating production and storage offloading industry and this had a huge impact on the market. Companies were locked due to stringent government policies imposed. Transportation facilities were at a halt for maintaining social distance norms. Employees were not able to go to work due to insufficient traveling facilities. These were the few most important points that impacted the market growth in the COVID-19 Pandemic.
The emerging economies of the Asia Pacific such as India, China, Indonesia, and Thailand among others are expected to fuel the growth of the floating production storage and offloading market. Increasing demand for extraction of crude oil products such as fuel, oil, and gas are expected to have a huge demand over the coming years. This is due to the growing population in these countries. India and China are investing huge amounts of funds for developing FPSO as these countries are among the ones that have the longest seashores. This becomes easy for the operations and extraction process using FPSO’s. Middle Eastern Countries such as Dubai, Qatar, Saudi Arabia, and various others are also investing huge amounts of funds in FPSO infrastructure to gain the maximum advantage of crude oil extraction.
Some of the key players in the floating production storage and offloading market are Bumi Armada, Shell, BP, ExxonMobil, Petrobras, Chevron, MODEC, Teekay, SBM Offshore, and BW Offshore. Shell is an oil & gas company famous for exploration, production, development, refining, and marketing. The company provides FPSO and also has its own FPSO systems.
Browse the full Report - Floating Production Storage and Offloading Market by Type (Converted, New-Build) by Propulsion (Self-Propelled, Towed) by Hull Type (Single Hull, Double Hull) , by Region (North America, Europe, Asia Pacific, Latin America and Middle East & Africa) - Global Industry Assessment (2016 - 2021) & Forecast (2022 - 2028)