Douglas-Westwood (DW) forecasts global subsea hardware Capex will total $117 billion (bn) between 2014 and 2018. This represents growth of more than 80% compared with the preceding five-year period. In 2013, subsea tree installations were lower than expected with delays in crucial projects off Brazil and West Africa. However, DW predicts an increase through to 2018, with major manufacturers reporting strong backlogs.
The global financial crisis in 2009 and the Gulf of Mexico oil spill in 2010-2011 limited growth in subsea hardware spend in the 2009-2013 period. The strong growth forecast in the next five years is due to a favourable outlook for offshore activities in the established deepwater provinces and the start of field development in new frontier areas, such as the Eastern Mediterranean and East Africa. Subsea hardware spend will be the highest in Africa, Latin America and North America, with the three regions combining to form almost half of the global total. Expenditure continues trending towards deeper waters with around 44% of total spend in the next five years targeting projects in water depths greater than 1,000 metres.
Subsea production equipment is to attract almost half of all expenditure by component, as high-value projects are set to come onstream after tree awards reached record levels in 2013, underpinning the elevated levels of subsea expenditure over the coming years. The SURF market makes up over a third of expenditure, driven by the development of remote fields, the addition of new project phases and the tie-back of satellite fields into subsea hubs. Pipelines make up the remaining spend, increasing considerably until 2016, driven by a few large offshore pipeline projects and several smaller tie-back pipelines.
The World Subsea Hardware Market Forecast 2014-2018 details specific subsea hardware trends by region and component supported by analysis, insight and industry consultation and includes:
DW's 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.
The report is relevant to strategy teams within subsea manufacturing, subsea services, drilling operations and offshore construction companies as well as financial institutions.
DW's research team monitors and analyses every aspect of the global subsea market from design engineering, seabed equipment procurement, construction & installation, to inspection repair & maintenance (IRM). Through our commissioned research we assist engineering houses, Oilfield equipment manufacturers, E&P operators and installation contractors in determining market dynamics, and assessing the supply and demand for subsea equipment and associated services on regional and country-specific basis. Our clients include major subsea equipment manufacturers, subsea engineering houses, ROV & diving contractors and E&P operators.
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