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World Subsea Hardware Market Forecast 2014-2018

Strong Growth Forecast for Global Subsea Hardware Market

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:

  • Drivers & indicators - a discussion of factors driving subsea hardware installation activity including robust oil & gas prices and deepwater production to offset declining production from onshore and shallow water basins.
  • Supply chain analysis - detailing the key players within the subsea hardware market and analysis of top manufacturers' subsea orders and backlog.
  • Regional & component forecasts - by region, noting key projects & operators and by subsea production hardware (trees, controls, templates & manifolds, flying leads, jumpers), SURF and trunklines Capex and units/km installed.

Why purchase the World Subsea Hardware Market Forecast?

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.

Our proven approach includes:

  • Unique and proprietary data - updated year-round from published sources and insight gained from industry consultation.
  • Detailed methodology - based on a thorough scrutiny of data which enables forecasts to be established on a project-by-project basis, taking into account factors such as project size, loca-tion, progress to date, operator workload, etc. DW takes a conservative view of the prospects for the subsea sector, to reflect the delays and schedule overruns that are fairly common in the industry.
  • Comprehensive market forecasts - examination, analysis and 10-year coverage of expenditure by region, depth and hardware type: subsea production hardware, SURF and trunklines.
  • 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.

More about Douglas-Westwood's Capabilities in the Subsea Sector

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.

Table of Contents

1. Summary & Conclusions

  • Summary
  • Conclusions

2. Drivers & Indicators

  • Population & GDP Growth Drive Energy Demand
  • Offshore Oil & Gas
  • Oil - Supply & Demand
  • Natural Gas
  • Oil & Gas Challenges
  • Importance of Brazil to the Subsea Market
  • Deepwater Focus Areas

3. Subsea Development

  • Why Subsea?
  • Offshore Production Options
  • Subsea Production Hardware
  • SURF and Pipelines

4. Supply Chain

  • The Subsea Equipment Supply Chain
  • Subsea Production, SURF and Pipeline Competitive Landscape
  • Subsea Tree Market Trends

5. Subsea Hardware Market Forecast

  • Methodology: DW Demand Scenarios
  • Methodology: Expenditure Forecasts
  • Methodology: Market Modelling
  • Hardware Assumptions
  • The World Subsea Hardware Market - Component Analysis
  • The World Subsea Hardware Market - Water Depth and Units
  • The World Subsea Hardware Market - Regional Analysis
  • Africa - Capex
  • Africa - Units
  • Asia - Capex
  • Asia - Units
  • Australasia - Capex
  • Australasia - Units
  • Eastern Europe & FSU - Capex
  • Eastern Europe & FSU - Units
  • Latin America - Capex
  • Latin America - Units
  • Middle East - Capex
  • Middle East - Units
  • North America - Capex
  • North America - Units
  • Norway - Capex
  • Norway - Units
  • Rest of Western Europe - Capex
  • Rest of Western Europe - Units
  • United Kingdom - Capex
  • United Kingdom - Units

6. Appendix

  • Data and Text Conventions

Figures & Tables

  • Figure 1: Global - Subsea Capex by Component 2009-2018
  • Figure 2: Global Population Growth & Energy Demand, 1965-2012
  • Figure 3: Historic Primary Energy Demand by Region
  • Figure 4: Global Oil Supply - Onshore/Offshore Split 1965-2020
  • Figure 5: Global Deepwater Capex by Region 2009-2018
  • Figure 6: Oil Price & Demand
  • Figure 7: World Liquids Production Growth, 2005-2013
  • Figure 8: Levellised Cost of Energy ($/mwh)
  • Figure 9: Natural Gas Prices ($mbtu)
  • Figure 10: Oil & Gas Production versus E&P Spend
  • Figure 11: 69% of Workers Are Over the Age of 40
  • Figure 12: Brazillian Offshore Basins
  • Figure 13: Deepwater Focus Areas
  • Figure 14: Borghom Dolphin Facility, North Sea
  • Figure 15: Perdido platform in Gulf of Mexico
  • Figure 16: Subsea Processing in Greater Gorgon off of Australia
  • Figure 17: Subsea Flow Meter
  • Figure 18: Subsea Hardware Supply Chain
  • Figure 19: Visible Subsea Production Hardware Orders
  • Figure 20: Visible Subsea Production and Processing System Backlog
  • Figure 21: DW Case - Subsea Tree Installations by Category
  • Figure 22: Global Subsea Capex by Component, 2009-2018
  • Figure 23: Global Subsea Capex by Water Depth, 2009-2018
  • Figure 24: Global Subsea Capex by Region, 2009-2018
  • Figure 25: Africa Subsea Capex by Component, 2009-2018
  • Figure 26: Africa Subsea Capex by Water Depth, 2009-2018
  • Figure 27: Asia Subsea Capex by Component, 2009-2018
  • Figure 28: Asia Subsea Capex by Water Depth, 2009-2018
  • Figure 29: Australasia Subsea Capex by Component, 2009-2013
  • Figure 30: Australasia Subsea Capex by Water Depth, 2009-2018
  • Figure 31: Eastern Europe & FSU Subsea Capex by Component, 2009-2018
  • Figure 32: Eastern Europe & FSU Subsea Capex by Water Depth, 2009-2018
  • Figure 33: Latin America Subsea Capex by Component, 2009-2013
  • Figure 34: Latin America Subsea Capex by Water Depth, 2009-2018
  • Figure 35: Middle East Subsea Capex by Component, 2009-2013
  • Figure 36: Middle East Subsea Capex by Water Depth, 2009-2014
  • Figure 37: North America Subsea Capex by Component, 2009-2018
  • Figure 38: North America Subsea Capex by Water Depth, 2009-2018
  • Figure 39: Norway Subsea Capex by Component, 2009-2018
  • Figure 40: Norway Subsea Capex by Water Depth, 2009-2018
  • Figure 41: Rest of Western Europe Subsea Capex by Component, 2009-2018
  • Figure 42: Rest of Western Europe Subsea Capex by Water Depth, 2009-2018
  • Figure 43: UK Subsea Capex by Component, 2009-2018
  • Figure 44: UK Subsea Capex by Water Depth, 2009-2018
  • Table 1: Subsea Production and SURF Competitive Landscape
  • Table 2: Pipeline Competitive Landscape
  • Table 3: Global Subsea Capex by Component, 2013-2018
  • Table 4: Global Subsea Components, 2013-2018
  • Table 5: Global Subsea Capex by Component, 2013-2018
  • Table 6: Africa Subsea Capex by Component, 2013-2018
  • Table 7: Africa Subsea Components, 2013-2018
  • Table 8: Asia Subsea Capex by Component, 2013-2018
  • Table 9: Asia Subsea Components, 2013-2018
  • Table 10: Australasia Subsea Capex by Component, 2013-2018
  • Table 11: Australasia, Subsea Components, 2013-2018
  • Table 12: Eastern Europe & FSU Subsea Capex by Component, 2013-2018
  • Table 13: Eastern Europe & FSU Subsea Components, 2013-2018
  • Table 14: Latin America Subsea Capex by Component, 2013-2013
  • Table 15: Latin America Subsea Components, 2013-2018
  • Table 16: Middle East Subsea Capex by Component, 2013-2018
  • Table 17: Middle East Subsea Components, 2013-2018
  • Table 18: North America Subsea Capex by Component, 2013-2018
  • Table 19: North America Subsea Components, 2013-2018
  • Table 20: Norway Subsea Capex by Component, 2013-2018
  • Table 21: Norway Subsea Components, 2013-2018
  • Table 22: Rest of Western Europe Subsea Capex by Component, 2013-2018
  • Table 23: Rest of Western Europe Subsea Components, 2013-2018
  • Table 24: Subsea Capex by Component, 2013-2018
  • Table 25: UK Subsea Components, 2013-2018
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