Deepwater Spend Forecast to Surge from 2016 Onwards
Deepwater expenditure is expected to increase by 130%, compared to the
preceding five-year period, totalling $260 billion (bn) from 2014 to 2018. As
production from mature basins onshore and in shallow water declines,
development of deepwater reserves has become increasingly vital. Robust oil
prices support investment in deepwater developments - the sustained high oil
prices over the past few years have increased confidence in the sector.
Africa and the Americas continue to dominate deepwater capital expenditure
(Capex), with $213bn set to be spent over the next five years. Africa is
forecast to experience the greatest growth among the three regions, as East
African natural gas developments begin production and become more prominent in
the latter years of the forecast period. Latin America will remain the largest
market and North America is expected to experience the least growth.
Douglas-Westwood (DW) has identified a temporary trough in global expenditure
in 2015 primarily driven by delays to delivery of FPS units in Latin America.
African projects have also experienced delays resulting in a surge in Capex
from 2016 onwards.
DW's 12th edition of the Deepwater Market Forecast covers all key commercial
themes relevant to players across the value chain in the deepwater sector:
- Supply chain - detailing the financing of deepwater developments,
contractors, equipment and installations. Includes analysis of contracting
strategies (e.g. frame agreements), dayrates, key players and capabilities of
each sector within the deepwater market (drilling, FPS and subsea hardware).
- Key drivers - discussion of factors encouraging deepwater activity
- including robust oil & gas prices, deepwater production to offset declining
production from onshore and shallow water basins, E&P spend of international
operators and Petrobras' activity in Brazil.
- Regional forecasts - forecast Capex within each region, including
examples of notable projects and operators within the region and countries
with most activity.
- Component forecasts - drilling and completion (subsea and surface
completed wells), subsea production hardware, SURF and trunklines.
The report also includes:
- Constraints - the impact of political and regulatory influences and
geopolitical disputes on the deepwater market.
- Local content requirements - includes case studies of key countries.
- Focus areas - examination of deepwater provinces, including recent
discoveries in East Africa.
- Procurement - factors affecting the decisions facing FPS operators,
whether to lease or own vessels and details of major leasing contractors.
- List of deepwater prospects - includes information on all
identified prospects coming onstream from 2014 to 2018 by operator, location,
water depth, number of trees and status category.
Why purchase the Deepwater Market Forecast?
Our market forecasting is trusted by sector players worldwide, with clients
including the world's top-10 oil & gas companies, top-10 oilfield services
companies and top-10 private equity firms.
Our proven process includes:
- Unique and proprietary data - updated year-round from published
sources and insight gained from industry consultation.
- Methodology - the report uses research from DW's 'Deepwater
Database', an in-house information system exclusive to DW. Our global analyst
team is involved in the gathering and analysis of deepwater market data
through primary research and professional networks. A project-by-project
review of development prospects drives a data-rich market model and forecast.
- Market forecasts - comprehensive examination, analysis and 10-year
coverage of deepwater expenditure.
- Concise report layout - consistent with DW's commitment to
delivering value for our clients, all our market forecasts have a concise
layout consisting of industry background and supporting materials condensed to
enable quick review with ‘speed-read' summaries of key points throughout.
- An essential report - for financial institutions, equipment
manufacturers, offshore construction companies, drilling operators, oilfield
service companies, shipbuilders and oil & gas companies wanting to better
understand where and when to make investment decisions.