Russian Oil & Gas Service Boom

Tuesday, June 26, 2007
While the recent high-profile problems of the western oil majors’ adventures in Russia have occupied the attention of politicians, the giant Russian oilfield services industry continues to work delivering the products and services that produce the oil. Speaking at conferences in both London and St. Petersburg, executives from energy analysts Douglas-Westwood (DWL) outlined the scale of the opportunities available to investors.

John Westwood, DWL managing director speaking at the SubseaTECH 2007 Conference in St. Petersburg stressed the importance of Russia as an oil and gas producer, “Russian oil production at over 9 million barrels per day is on a par with Saudi Arabia and Russian gas used in power generation is keeping many of the lights on in Western Europe.”

Addressing members of the Energy Institute in London, DWL’s assistant director Steve Robertson stated that, “the oilfield services industry has evolved rapidly in recent years, driven by operators’ increasing use of outsourced services and a move to Western business models. However, the market remains fragmented and further consolidation is expected in the coming years, with independent indigenous companies and western providers playing an increasingly important role.” Analyst Rod Westwood explained that major changes were underway as some of the existing producing regions decline, whilst growth in Eastern Siberia will soar 43% in the next five years.

“Opportunities abound as aging infrastructure such as drilling rigs are overdue for replacement, whilst on the demand-side activity is expected to grow as the new regions prove a far tougher challenge than the ‘easy oil’ previously developed in Western Siberia.

“Onshore oilfield services of seismic, well drilling and workover sectors were a market valued at $11.4 billion in 2006 and we forecast this will reach $22.5 billion by 2011.” Back in St Petersburg, John Westwood told delegates that the new offshore developments in Russia’s arctic waters will stretch the limits of available know-how and will probably need to make use of Norwegian experience of such conditions.

“However,” he said, “this is not all a one-way street and Russia has a considerable track record of leading technological developments for military applications that could well be applied in offshore oil & gas applications.”

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

People & Company News

NAVCENT Commander Recognizes Journey of Hope Sailors

Commander, U.S. Naval Forces Central Command, U.S. 5th Fleet, Combined Maritime Forces, Vice Adm. John. W. Miller, recognized the accomplishments of three special-needs sailors from the Kuwaiti ship,

NYK Holds 8th Environmental Management Conference

NYK welcomed about 60 environmental supervisors from 47 NYK Group companies to the group’s annual Environmental Management Conference in Tokyo. NYK holds this

W&O, LESER Partner to Deliver Safety Relief Valves

W&O, a global supplier to the marine and upstream oil and gas markets for pipe, valves and fittings, valve automation and engineered solutions, has partnered with

Contracts

Diana Extends Containership Time Charters

Diana Containerships Inc. announced direct continuation of time charter agreements for m/v Cap Domingo and m/v Cap Doukato   Diana Containerships Inc., a global

BMT Supports Samalaju Port Development

BMT subsidiaries in the Asia-Pacific region have been awarded a contract to provide design expertise for an advanced bulk-material handling system for the emerging port of Samalaju in East Malaysia.

EU: Ships Will Measure CO2 Emissions

Shippers to begin monitoring from 2018; Environmental groups say law is weak, shippers favorable. The shipping sector will for the first time have to monitor

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Ship Electronics Ship Simulators 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: 0.1763 sec (6 req/sec)