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

Offshore

Renewable Energy: Schottel Tidal Turbines Ready For Use

In the last months Schottel  successfully tested its hydrokinetic turbines in Strangford Lough, Northern Ireland. The full-scale tests included 260 operating hours under realistic conditions.

Total CEO Killed in Moscow Runway Accident

Private jet collided with snow plow during takeoff; Total's CEO a defender of Moscow policies. Insiders Boisseau and Pouyanne long seen as potential successors.

Statoil: New Oil in the Grane Area

Statoil has together with PL169 partners proved new oil resources in the D-structure in the vicinity of the Grane field in the North Sea.   Well 25/8-18 S, drilled by the rig Transocean Leader,

Environmental

Court Dismisses Boating Industry’s Challenge to EPA Misfueling Rule

The National Marine Manufacturers Association (NMMA) said it is disappointed with the U.S. Court of Appeals decision released on Tuesday, October 21, 2014 for the D.

New Dual Use Piracy Barrier Launched

Guardian Maritime launched Guardian Greenwater, a new product that was developed to deal with the issue of greenwater on-board deck following turbulent weather conditions,

Australia Join Operation RENDER SAFE

Australian Defence Force (ADF) personnel have arrived in Bougainville to address a potentially deadly legacy posed by unexploded ordnance from past conflicts as part of Operation RENDER SAFE 2014.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair 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: 0.1324 sec (8 req/sec)