$100 Oil: Driving Deepwater Oil Services Boom

Thursday, November 08, 2007
Deepwater is one of the few areas where good prospects of major oil finds still remain, and these are mainly outside the control of OPEC. In a note to clients today, John Westwood, MD of international energy analysts Douglas-Westwood said “over the past year the stock prices of a grouping of 10 companies with significant exposure to the sector (the Douglas-Westwood Deepwater Index) has risen by an average of 79% and one, Wellstream, by 157%”. Deepwater now accounts for almost 15% of total offshore oil and gas production, but over the next few years its total share relative to shallow-water output will grow, to around 20% of offshore production by 2011. “In our May 2004 newsletter when oil was $40 we stated our view that, “the recent high prices are just a practice run,” and that the low oil price party was almost over, said Westwood. “As oil prices then rose, mainly driven by Chinese demand, so did oil company stock prices helped by a surge of M&A activity. Then stock price gains slowed dramatically as the larger deals were done and the realization dawned that ‘big oil’ needs big reserves to prosper – reserves that are now mainly in the hands of national companies. It quickly became obvious to us that the oil majors need a new business model. “Then investors discovered oil services. In the year to November 1st 2007 the Philadelphia Oil Services Sector Index (OSX) has showed a gain of 56% compared with the FT Oil Index of E&P companies which registered an 11% gain. But deepwater oilfield services at 79% growth have even outperformed the OSX.” More than a decade ago, Douglas-Westwood forecast that deepwater oil & gas would develop into a high growth sector. The latest edition of “The World Deepwater Market Report” forecasts that annual deepwater Capex will reach nearly $25 billion by 2012. Global deepwater expenditure to exceed $108 billion through 2012 The World Deepwater Market Forecast 2008-2012, recently published by energy analysts Douglas-Westwood, forecasts continued growth in the deepwater sector with annual expenditure reaching over $24.6 billion by 2012. For further information contact john@dw-1.com

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

MOL Signs Long-Term Charter with Uruguayan JV for FSRU

Japanese shipping company Mitsui O.S.K. Lines, has, through its wholly-owned subsidiary Lakler S.A., agreed to conclude a charter contract with Gas Sayago, for

Migrants Survivors Tell of Struggle at Sea

The bodies of 21 women and one man were brought ashore to Sicily on Friday as fellow migrants described scenes of panic and violence when water poured into their dinghy.

Three Keppel Dredgers for Jan De Nul

Keppel Offshore & Marine Ltd (Keppel O&M)'s wholly owned subsidiary Keppel Singmarine Pte Ltd (Keppel Singmarine) has secured contracts from Jan De Nul Group to

Tanker Trends

Port of Rotterdam Throughput Dips in 2016

Compared to the first half of 2015, which saw throughput increased by 6.8 percent, the Port of Rotterdam handled 3 percent less cargo in the first six months of 2016,

Libyan Deal to End Oil Ports Blockade Needs Signing

Libyan Petroleum Facilities Guard (PFG) commander Ibrahim Jathran said on Monday he was ready to end a blockade at key oil terminals, but the U.N.-backed government

As Market Sours, LPG Tankers Anchor off Singapore

Record U.S. LPG exports to Asia flip market into a glut. Last year, liquefied petroleum gas (LPG) supplied to Asia was being snapped up by petrochemical makers.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Pod Propulsion Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0744 sec (13 req/sec)