$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 Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Indonesia Expects Total to Decide on Mahakam within days

French oil firm Total  will decide how much interest it will retain from 2018 in Indonesia's offshore Mahakam oil and gas block over the next two days, the

Water Conservation Measures at Panama Canal

The water levels at Gatun and Madden Lakes are currently well below the expected levels for this time of year. Based on a comprehensive analysis of historic data,

First Subsea Wet Gas Compressor Installed

After several years of technology development, construction and testing the first subsea wet gas compressor in the world is now installed at the Gullfaks C platform in the North Sea.

Tanker Trends

NITC Claims World's Largest Supertanker Fleet

According to the head of the National Iranian Tanker Company (NITC), Iran has 42 very large crude carriers or VLCCs, each able to carry 2 million barrels of oil, reports Press TV.

Teekay LNG Partners Declares Distribution

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. has declared a cash distribution of $0.70 per unit for the quarter ended June 30, 2015. The cash distribution is payable on August 14,

NITC Tankers Chart Western Course

Iran’s largest shipping company NITC, the privatized Iranian shipping company, is in talks for permission to sail in Western waters, says a report in WSJ.   NITC

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Repair Shipbuilding / Vessel Construction
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: 0.1683 sec (6 req/sec)