50% growth in subsea spending – Offshore Update – Brief Article – Statistical Data Included
Robert E. Snyder
The World Subsea Report, a major new study published in mid-February by energy analyst Douglas-Westwood, and data specialist Infield Systems, forecasts continuing growth in the subsea production business. The study sees an increase from annual capital spending of $5.7 billion in 2000, to over $10 billion/year from 2003 onward. Compared to the previous five-year period, during which the estimated capex in the subsea sector was $34 billion, the 2002-2006 period should see a 50% growth.
The study analyzed 581 subsea projects currently under consideration for development over the period to 2006, and these were input to a specially developed model to value world markets. The total value of the global subsea market over the period could exceed $51 billion, and it could be more if the long-term growth trend continues.
Drilling and completion of sub sea wells represents the most significant market segment in value terms, amounting to some $22.4 billion, or 45% of the total capex forecast. Flowlines, both rigid and flexible, make up the next biggest segment, with a value of about $15 billion, or almost 30% of the forecast market.
Activity is fairly widespread among the worldwide regions, although the UK is forecast as the leading market at 25% of the $51 billion, slightly ahead of Brazil at 19%. Activity-wise, Petrobas is expected to maintain its leading subsea player status with prospects for 33 projects and 330 wells. TotalFinaElf plans a threefold expansion in subsea activity, taking it from 12th place to 2nd place, and edging ahead of three supermajors–BP, Shell, and ExxonMobil–largely as a result of its extensive deepwater activities on Block 17 off Angola. Statoil, 3rd in the world historically, falls to 9th place, a position to be shared by the proposed merger between Conoco and Phillips. Further information on this timely publication is available from John Westwood at Douglas-West wood; e-mail: admin@dw-1.com.
COPYRIGHT 2002 Gulf Publishing Co.
COPYRIGHT 2002 Gale Group
