Deepwater spending rise seen by Douglas-Westwood
Deepwater oil and gas spending is expected to rise by 130% to $260 billion from 2014 to 2018, predicts Douglas-Westwood.
CANTERBURY, UK –Deepwater oil and gas spending is expected to rise by 130% to $260 billion from 2014 to 2018, predicts Douglas-Westwood.
The capex forecast says Africa and the Americas will lead the pace with $213 billion over the five-year span. Africa will be the growth leader as eastern African gas developments progress. Latin America will be the single largest market in total spending dollars.
Douglas-Westwood sees a temporary trough in spending during 2015 owing to delays in delivery of FPS vessels to Latin America. Similar delays for African projects will result in a spending surge from 2016 forward.
The forecast is based on robust oil prices supporting deepwater investments and the opinion that the sustained oil prices over the last few years has increased confidence in the sector.