Unprecedented growth forecast across subsea oil and gas industryNews // February 9, 2007
The booming subsea oil and gas industry is on the cusp of a major period of growth with its global revenue estimated to rise by more than a third from US$29 billion to US£41 billion by 2011.
These findings are from a new report commissioned by the Scottish Enterprise energy team from Douglas-Westwood and unveiled at Subsea 07 – Europe’s biggest event for the subsea oil and gas sector. The report warns that while subsea hardware providers are struggling to meet demand and there are serious shortages of deepwater installation vessels, there is still significant growth ahead.
Africa is forecast to become the world’s largest subsea market, growing from US$6 billion in 2006 to US$12 billion within four years. Asia and Latin America are also expected to see extensive levels of growth.
On the non-pipeline side, drilling and completion is predicted to rise by 45 per cent between 2007 and 2011, from £8.1 billion to £14.4 billion. Meanwhile numbers of global subsea well installations have grown from approximately 200 in 2004 to 300 in 2006, with a further 500 units forecast by 2011.
Scottish subsea companies are already world leaders in technology supply and operations. A major player in remotely operated vehicles, this sector is expected to double over the next five years.
The energy team hopes the research can be used by Scottish subsea businesses to keep one step ahead in the global market and target their activities to where there are huge opportunities on offer.
The research also analyses issues which can be barriers to business, such as security, corruption, culture, language and market access.
It breaks down the potential value of business from 2007 to 2011 in all mature and developing fields – into subsea production and pipelines – and gives figures from the last five years for comparison purposes. It also gives examples of significant projects in each geographical area.
Speaking at Subsea 07, Scottish Enterprise energy director Brian Nixon, said: “The oil and gas industry is booming with unprecedented levels of business and optimism for the future and the subsea sector is riding that wave. We want to work with industry to make sure that upward trend continues for the good of the Scottish economy."
“The research we commissioned is hugely valuable to the sector and could help companies gain the competitive edge they need to win business well into the future. We would encourage them to assess the information and make full use of it.”