News: Report Examines ROV Growth

Monday, April 05, 2004

In a recent report, the energy & marine industry analysts Douglas-Westwood, has revealed that operations of cable controlled 'work-class' remotely operated underwater vehicles (ROVs) is a business worth $600 million worldwide and this is forecast to grow to $725 million by 2008. The firm reported these results in 'The World AUV & ROV Report,' a new global business study published. In his keynote address to delegates at the 'Advances in Technology for Underwater Vehicles' conference in London, DWL's John Westwood said he expected this growth to mainly come from the oil & gas sector as increasing demand raises ROV utilization and day rates.

The three main ROV business sectors discussed by the report are: support of offshore drilling operations - a $200 million market with steady growth prospects; offshore construction - a $300 million with good growth prospects; and annual pipeline inspection - a small $24 million market with good growth ahead. Activity is mainly divided between four geographic regions; Africa - which offers the greatest growth prospects over the next five years, S E Asia and North America. Brazil is also expected to show good growth.

ROVs have been in operation since the late 1970's and more than 5,600 individual ROVs have been built to date. Of the large 'Work' class ROVs deliveries have totalled over 900 units with some 500 of these being in commercial operation worldwide. Following a series of acquisitions, the largest owner is now Oceaneering, with we believe 156 work class ROVs.

ROV manufacturers have faced considerable difficulties in recent years following the double whammy of the oil price fall in 1998 followed by the collapse of the submarine cable installation market where ROVs were extensively used. Over the next five years improving operational day rates may encourage vehicle operators to buy new ROVs rather than replacing old components, but according to Westwood the business still lacks a new gamechanger technology to drive new vehicle sales.

AUVs enter the game

The cable-less cousins of ROVs, autonomous underwater vehicles (AUVs), are now entering commercial operations. At least 120 AUVs have been produced to date, but so far only five or six large ones are in regular commercial operations. Arguably the most successful has been the Norwegian Kongsberg 'Hugin' used in deepwater survey operations for the oil & gas industry where high efficiencies have been demonstrated and remarkable data quality achieved. But deepwater survey is a limited market and more applications are required to drive sales - a major challenge is in developing AUVs that can be cost effectively deployed in place of survey vessels for surveys in continental shelf water depths less than 500 m. However, new AUV concepts are emerging, including vehicles that can be launched from a floating production platform and travel autonomously to remote subsea wellheads and 'dock' onto power and control from the platform. This is an area that is of interest to oil companies. The French company Cybernetix is developing vehicles that combine these characteristics of ROVs and AUVs. Another French company, ECA, known for its military vehicles is developing a pipeline inspection AUV.

How many large AUVs will the market need? Looking forward to 2008, the Douglas-Westwood report gives three scenarios; 'High' with 66 AUVs operating, 'Most Likely' 26, and 'Low '12. In the words of John Westwood, AUVs are still "a great idea seeking commercial markets. To make progress AUV designers need to fully understand potential applications then tailor solutions to customer needs."

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

Offshore

Floating Production: $1.2b Speculative FLNG Ordered

The floating production business continues to be very strong, particularly in the LNG gas processing sector.  Last month saw a speculatively ordered floating liquefaction plant – a $1.

FLNG Prelude: A New Dawn in the Age of Maritime & Energy

Longer than four football fields, as big as six Nimitz-class aircraft carriers and almost as tall as the Taipei 101 skyscraper, Royal Dutch Shell PLC is hoping that its record-setting,

Corvus Energy, GMC Close Financing Agreement

Corvus Energy today announced that it has completed a strategic investment by Green Marine Capital (GMC) previously announced on May 5, 2014. Green Marine Capital,

Dredging

LUSCHI Begins Dredging at ArcelorMittal’s Canal

LUSCHI announced today it will mobilize its vessel Giovanella to Espírito Santo to assist in the dredging and final disposal of accumulated sediments in the seawater storage canal of ArcelorMittal,

Rohr Dredge Continues European Expansion

Rohr International Dredge Holdings, Inc. announced that it acquired Eurl Rohr France, including its current backlog, inventory and all associated intellectual property (IPR), on July 23, 2014.

Dredging at Jurong Port, Singapore

Dredging work will be carried out at Keppel Shipyard Benoi Road, off West Jurong Channel, from 28 July to 30 September. As per the Maritime and Port Authority of Singapore Port Marine Notice No.

 
 
Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction
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: 0.1296 sec (8 req/sec)