Editor's Note
Uncontrollable external forces driving commercial development is the hallmark of any industry. However, the last three years serve as a prime example of how such forces can significantly affect the maritime realm. When the reality of an Asian financial collapse hit in late 1997 and the price per barrel of oil eventually dove to $10, the thought of a $30+ barrel by 2000 seemed ludicrous. But, just as world political and market forces help to drag markets down, they inevitably turn and help to push them up again. Today’s reality is a low to mid-$30 per barrel of oil, as tensions in the Middle East, OPEC and low product stocks continue to buoy the barrel. With concerns of an energy crisis in the U.S.
Report: Deepwater Development Will Outpace Equipment Supply
The booming global deepwater oil industry is on course to outpace supply of offshore development hardware in the next two years, according to an analysts' report. "Deepwater construction capacity will be insufficient to handle anticipated demand requirements in 2002 and particularly 2003-04," said an oilfield and equipment services report by Schroder Salomon Smith Barney. "We believe a rush of field development plans will be sanctioned in 2001, followed by major contract awards to marine contractors," it added. With oil prices having tripled in 18 months, companies are loosening constraints on exploration and development spending imposed during a price slump in 1998 and early 1999. But a backlog of potential developments could grow as limits emerge to equipment supply.
Deepwater Prospects Ripe
It appears that the long-held promise of deepwater offshore discovery and recovery is well-positioned to pay off, particularly in the face of $30+ barrels of oil. As technology has increasingly allowed oil companies and offshore drilling firms to more accurately find and evaluate potential drilling hot spots, there has been a fervor for the development of deepwater drilling equipment and design of offshore supply vessels to support the operation. The booming global deepwater oil industry is on course to outpace supply of offshore development hardware in the next two years, according to an analysts' report, as reported in the October 30 edition of Maritime Week, sister-publication to Maritime Reporter & Engineering News.
