Arthur D. Little predicts consolidation and globalization for maturing subsea oil and gas sector

As oil prices continue to rise and deepwater reserves demonstrate increasing appeal to national oil giants, the subsea oil and gas sector faces significant challenges to ensure future growth, according to a new report launched today by global management consultancy Arthur D. Little. The report, "Opportunities and threats in the maturing subsea market", warns that shortages of skilled personnel, production equipment supply constraints, and limited access to raw materials are critical factors the sector must overcome to ensure continued growth in the next five to 10 years. Like the whole of the oil and gas sector, the subsea market has recently aimed to increase production capacity to meet ever-growing market demand against a backdrop of both skilled labor and production equipment shortages.  Arthur D. Little's report concludes that these challenges will only increase in the next five years as the subsea sector expands into new regional markets, equipment prices drop, and producers face increased competition from national oil companies investing in developing subsea facilities. "The subsea industry is poised to continue growth and expansion into new markets," said Ben Thuriaux-Alemán, coauthor of the report and manager in Arthur D. Little's Energy & Utilities Practice.  "In the coming five years, the industry will face gradually increasing cost competition and pressure to achieve economies of scale.  Subsea companies will need to deal with significant challenges in order to maintain their positions." Sarah Crombie, coauthor and manager in Arthur D. Little's Energy Practice, said: "Subsea technologies have been developed through collaboration between operators, service providers and manufacturers. The current changes in the industry are creating opportunities for National Oil Companies wanting to develop a leading position in subsea technology." Strategies for subsea market growth
In its most recent report Arthur D. Little examines the challenges facing the subsea sector in the next five to 10 years, and outlines the three areas of focus most likely to affect future growth:

  • The rise of NOC power and its implications on technology development and subsea players
  • The impact on current subsea service providers and the extension of subsea technology into new regions where production is growing rapidly
  • Increased consolidation across the industry
The full report includes a geographical analysis of projected subsea market growth, as well as an outline of how manufacturers and the subsea supply chain players can maximize their outputs and secure growth despite threats of market consolidation and falling equipment prices. "Opportunities and threats in the maturing subsea market" is now available for download at

Notes for Editors

About Arthur D. Little
Arthur D. Little (ADL), founded in 1886, is a leading global management consulting firm that links strategy, innovation and technology to master complex business challenges while delivering sustainable results to our clients.  Arthur D. Little has a collaborative client engagement style, exceptional people and a firm-wide commitment to quality and integrity.  ADL is proud to serve many of the Fortune 100 companies globally in addition to many other leading firms and public sector organizations.

Further Information

Sarah Crombie/Ben Thuriaux-Alemán
Arthur D. Little
Tel: :+44 (0)870 336 6600 Sue Glanville/Maita Soukup
Say Communications
Tel: +44 (0)208 971 6423/6421