GLOBAL MARKET TRENDS
Mapping the Western Canadian Crude Oil Market Complex
Canada will become the world’s fifth-largest producer of crude oil in 2017. The solvent-assisted-SAGD poses the largest advancement in production techniques in the oil sands, and if scaled up, could further reduce extraction costs.
Decommissioning Expenditure in Western Europe To Top USD 100 Billion From 2017 to 2040
Western Europe is the first area outside of the US Gulf of Mexico to see large-scale decommissioning. Well decommissioning is forecast to account for the majority of the expenditure.
Vessel Contractors Reshape for the Rebound
As the offshore market downturn and bankruptcy take their toll among vessel contractors, industry consolidation and bargain vessel acquisitions take shape.
Decomm and Offshore Wind Revive Heavy-Lift Industry
Heavy-lift vessels aim for opportunities in decommissioning in UK North Sea and Norway and offshore wind projects.
Helicopter Services Market in Slow Ascent
Despite a turbulent time for most offshore sectors over the past 2 years, Douglas-Westwood’s latest analysis from the World Offshore Helicopters Market Forecast 2017–2021 projects USD 18 billion in oil- and gas-related expenditure over the next 5 years.
Decreased Investment in Online Pipelines To Cause Lag in Installation at End of Decade
The downturn and lack of investment for new projects are likely to impact the onshore pipeline industry toward the end of the decade. But the long-term drivers for pipeline construction, notably the increased demand for gas in regions such as Asia, remain stable.
World Offshore MMO Market: A Steady Return to Growth
Since the recent oil price downturn, the offshore MMO market has witnessed a significant decline in global expenditure. The most severe decline in total regional expenditure is anticipated to occur in North America, with modifications expenditure forecast to drop by 56% between 2014 and 2016.
AUVs Gain Momentum in Oil and Gas Operations
AUVs have evolved from an emerging technology with niche uses to a viable solution and an established part of operations in various marine sectors. Douglas-Westwood’s AUV Market Forecast considers the prospective demand for AUVs in the commercial, military and research sectors over the next 5 years.
Onshore Spending on the Cusp of Recovery
Douglas-Westwood’s quarterly World Oilfield Services Market Forecast and World Oilfield Equipment Market Forecast continue to suggest that 2016 marks the start of a barren period for the global oilfield services and oilfield equipment sectors, with onshore looking more positive than offshore.
FLNG Outlook – Pioneering Export Facility Arrives; While Regasification Units Increase
Douglas Westwoods' world FLNG market forecast for the period 2016-2022. A stormy ride is expected for the LNG industry, as the fall in natural gas prices limits investment in capital-intensive liquefaction projects.
Protracted Low Oil Price Impacts Deepwater Expenditure
Continued suppression of global oil prices has questioned the viability of several large and ultradeepwater projects. Article covers Douglas-Westwood’s deepwater expenditure forecast for the 2016–2020 period, and the effect of reduced rig demand on deepwater Capex growth.
Decommissioning Market To Boom From 2016 to 2040
Many of the platforms in the North Sea are late in life, operating long past their initial design expectations due to costly life-extension work. Decommissioning has moved slowly, but the low price environment is likely to accelerate the trend.
Iranian Oil and Gas Production Shows Significant Upside Potential, but Limitations Remain
Iran’s oil and gas sector has been significantly affected by the introduction and tightening of international sanctions in recent years. represents a significant step forward in terms of normalizing the country’s relations with the global community.
Oversupply of Subsea Vessels To Continue Until Gradual Recovery in Operators' Spending
Douglas-Westwood (DW) expects the expenditure of subsea vessel operations to begin a gentle upswing after next year.
World Offshore MMO: From Slow to Grow
Low prices will constrain maintenance and modifications in the coming year. However, maintenance can only be delayed so long, leading to a long-term outlook of growth in the market for maintenance, modifications, and operations.
Subsea Infrastructure Growth Tempered by Oil Price Collapse
Projects are being delayed or deferred due to low oil prices, which is affecting the market for subsea, umbilicals, risers, and flowlines (SURF).
Despite Imminent Project Delays, Deepwater Spend To Total USD 210 Billion From 2015 to 2019
Operators have announced reduced budgets and delayed deepwater project sanctions. Despite these reductions, the long term outlook is for increased deepwater spending.
Floating Production Systems Expenditure To Total USD 81 Billion From 2015 to 2019
Though the projects that have already been sanctioned will ensure that spending in the FPS sector will remain high over the forecast period, the growth in FPS market is significantly less than expected due to the collapse in oil prices, and installations in 2018 will decline.
LNG Capital Expenditure To Total USD 259 Billion in the Next 5 Years
Growing world demand for natural gas will drive increases in capital expenditures on LNG through 2019.
Increasing Activity, Complexity, and Water Depths To Push Subsea Vessels Operations Cost Higher
Over the next 5 years Douglas-Westwood (DW) expect USD 122 billion to be spent on global subsea vessel operations—an increase of 64% compared with the previous 5-year period.
Floating Production Systems Expenditure To Total USD 99 Billion From 2014 to 2018
The market for floating production systems is growing rapidly, with spending from 2014-2018 expected to increase more than 100% from the prior 5-year period. Factors such as increased local content contribute to growing expenditures.
Deepwater Spend Forecast to Surge from 2014 to 2018
Deepwater capital expenditure is expected to more than double compared to the previous 5 year period. Douglas-Westwood also expects a continued trend toward exploration in ultradeepwaters in depths greater than 2000 m.
ROV Work-Class Operation Expenditure to Grow by 80%
Expenditure is forecast to increase more than operational days because of the move toward deeper waters and more complicated offshore field development programs, which demand higher specification, higher cost ROVs.
Subsea Vessel Operations Market Poised for Increase in Demand
The global subsea vessels market is expected to reach more than USD 100 billion in the next five years, with demand up by 23%.
Global Capital Expenditure on LNG Facilities Continues Upward Trend From 2013 to 2017
Strong demand for natural gas is driving a recovery in liquefied natural gas (LNG) expenditures worldwide, with expenditures expected to reach USD 228 billion in the next five years.
Subsea Hardware Spend Forecast To Double From 2013 to 2017
Deepwater activity is booming in the Golden Triangle (Brazil, west Africa, and the Gulf of Mexico), which is forecast to account for 44% of total subsea hardware expenditure. Trunkline projects are of particular significance.
World Demand for Onshore Pipeline Construction to Grow From 2013 to 2017
Pipelines play a vital supporting role in the energy supply chain as one of the most efficient modes of hydrocarbon transportation. Unconventional resource development and LNG have set the stage for growth in onshore pipelines.
Deepwater Capital Expenditure of USD 223 Billion Forecast From 2013 to 2017
In 2013, as deepwater projects become increasingly capital intensive, there are economic challenges for exploration and production (E&P) companies and a potential prize for international oilfield service and equipment vendors. Deepwater represents a long-term opportunity.
Significant Growth Forecast for Capital Expenditure in Floating Liquefied Natural Gas
Increasing gas demand and the requirement for short-term to medium-term import solutions have led to rapid growth in the floating regasification sector in recent years.
Floating Production Expenditure Set to Double by 2017
Expenditures for floating production systems are expected to more than double in the next five years. This growth is driven by multiple factors.
Deepwater Developments and Increased Confidence Drive Growth in Subsea Vessel Operations
The market for subsea vessel operations in field development; inspection, repair, and maintenance (IRM); and subsea well intervention is expected to grow 63% during 2012 to 2016.
Pacific Basin Activity To Drive LNG Import and Export
From 2006 to 2010, much of the liquefied natural gas (LNG) export construction activity occurred in the Middle East, in particular Qatar.
Strong Growth Forecast in Offshore Operations and Maintenance Expenditure
Douglas-Westwood expects 8% growth in offshore operations and maintenance (O&M) expenditure annually from 2012 to 2016. O&M are markets considerably less vulnerable to downturn than their capital‑led counterparts.
Deepwater Spending to Rise to USD 232 Billion in Next Five Years
Expenditures for deepwater projects are expected to rise by 90% over the next 5 years. Drilling and completion of subsea wells will dominate deepwater spending. Higher oil prices are supporting the development of deepwater prospects to contribute to world energy supplies.
Floating Production to See USD 68 Billion Investment
Investments in floating production systems are expected to increase sharply over the next five years, driven by a surge in installations.