Deepwater Development Dollars to Double

Friday, December 06, 2002
Deepwater field development expenditure is forecast to continue its strong growth trend, doubling over the next five years. Launching the latest edition of 'The World Deepwater Report' at the 14th Deep Offshore Technology Conference in New Orleans, John Westwood, managing director of international analysts Douglas-Westwood, said that his firm expected nearly $58 billion to be spent over the next five years in developing deepwater fields. "We expect West Africa to lead the pack attracting 38% of the expenditure, followed by the Gulf of Mexico with 32% and Brazil with 23%," said Westwood.

The report is based on analysis of data in the Infield Systems database and their data manager, Dr. Roger Knight, stated that the underlying data shows that oil & gas companies are currently considering over 140 deepwater field developments over the period. "Some are tiny single well tiebacks and of course not all will go ahead," said Knight, "so the analysis takes a conservative view of the prospects. Nevertheless, the outcome is that we expect at least 32 billion barrels of oil equivalent deepwater reserves to come onstream compared with the 10 billion boe brought onstream over the previous five years."

Douglas-Westwood's lead analyst, Dominic Harbinson, said, "Over the next five years some $21 billion is likely to be spent on deepwater floating production systems, $18 billion on drilling and completing subsea wells and $11 billion on flowlines and control lines, while subsea hardware and surface completed wells could account for a further $8 billion."

So what could derail these oil company plans? John Westwood's main concerns are limited human resources and contractors' low profitability. "Although everyone in the industry is aware of the problems of an aging workforce and low levels of graduate attraction, in reality far more still needs to be done to address the problem, perhaps by finding cleverer ways of using the huge potential skill pools of the developing world. "The second point is that risk and reward for the contractor community has got out of balance. It is now obvious that the present EPIC contracting system has pushed too much risk onto contractors and new working methods must be developed. Lump-sum contracts are fine for commodity products; I don't think they are appropriate for the leading edge of such a demanding industry. In the final analysis, the deepwater oil & gas industry is dependent upon the existence of profitable contractors."

The World Deepwater Report 2003-2007 is available from Douglas-Westwood Limited, www.dw-1.com

For more information on the report Email: admin@dw-1.com or visit www.dw-1.com.

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Vard Orders Rolls-Royce Equipment for Rem OCV/AH

Rolls-Royce has won a £19m contract with the Norwegian shipbuilding group Vard to deliver deck machinery, propulsion and engines to a new offshore construction

First Havyard WE Design Delivered to Fafnir Offshore

Havyard Ship Technology's build 120 'Polarsyssel', a Havyard 832 L WE design, was delivered to Fafnir Offshore yesterday. It will go straight on assignment for

Brazil's Óleo e Gas, OSX Renegotiate FPSO Contract

Óleo e Gas Participações SA, the Brazilian oil producer that is under bankruptcy protection, and former sister company OSX Brasil SA completed on Friday a plan

Environmental

USCG Respond to Grounded Vessel near Pleasant Harbor, Washington

The Coast Guard and Washington State Department of Ecology are responding to a report a of 65-foot pleasure craft aground near Pleasant Harbor in Brinnon, Washington, Sunday morning.

Two Long Beach Port Funded Projects Opened

In a festive ceremony, two Port of Long Beach grant-funded environmental projects had their grand openings yesterday,  at the Century Villages of Cabrillo homeless

Porter Voices Concerns Over Texas Pipelines

Commissioner David Porter of the Texas Railroad Commission (RRC) Tuesday visited several south Texas border oil and gas facilities and pipeline rights-of-way to meet with field staff,

 
 
Maritime Contracts Maritime Standards Naval Architecture Pipelines Pod Propulsion Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1869 sec (5 req/sec)