While much attention rightfully is paid the development of offshore oil and gas spending offshore Africa, a new report claims that Latin America is one of the fastest growing regions globally, slated to exceed Africa's Deepwater spend by 2014.
Speaking at the SUT Learning Luncheon in Houston Steven Kopits, Douglas-Westwood Director, commented, “For oil companies the overall outlook for 2012 is positive. The longer-term outlook indicates that subsea, predominately deepwater; developments will continue to play a major part in the portfolios of the majors IOCs (such as Total, Shell, BP and Exxon) and some NOCs (such as Petrobras and Statoil).”
The 12th edition of the World Deepwater Market Forecast forecasts a 90% growth in expenditure, compared with the previous five-year period, with $232 billion to be spent 2012-2016. The outlook for the deepwater business is clearly one of significant long-term opportunity. As deepwater projects becoming increasingly capital-intensive there is an economic challenge for E&P companies and a significant potential prize for international oilfield service and equipment vendors.
Douglas-Westwood pioneered the original deepwater report in 1998 and the award-winning company has tracked and analysed the deepwater market extensively ever since, developing unparalleled knowledge and experience in the sector. This comprehensive report goes beyond a complete breakdown and forecast for the industry and provides unique insight into how changes in the industry, in the short to medium term, will impact market players.
Report author, Lucy Miller, concludes, “Regionally, the focus for development activity will largely remain in the deepwater ‘golden triangle’ with Africa and the Americas representing 72% of Douglas-Westwood’s forecast spend. Within this group Latin America
is likely to experience substantial growth, exceeding Africa
’s deepwater expenditure towards the middle of the forecast period, driven by Petrobras’ development of its Campos and Santos (pre-salt) fields off Brazil.”