$139 Billion Subsea Equipment Spend Forecast
24 February 2011Douglas-Westwood predicts a 23% growth in subsea hardware capex to $139 billion in 2011-2015 compared to the prior five-year period.
In its first “World Subsea Hardware Market Report”, the analysts say the challenge of reaching new reserves is a driver. Others include deeper water developments, more remote locations, and metocean extremes.
Higher oil prices and advancing technology make viable smaller, more widely scattered developments, all of which mitigate in favor of subsea production.
Subsea pipeline spending will account for more than half the capex, says the report. The so-called “Golden Triangle” of West Africa, the Gulf of Mexico, and Brazil will account for more than 60% of all subsea production, SURF, and processing hardware spend over the forecast years.
“This study highlights the astonishing technical capability that exists within the subsea sector and puts into perspective just how capital-intensive oil and gas extraction now is for upstream E&P players,” says Steve Robertson, director.