Offshore E&P activity is expected to continue growing at a measured pace, led by an increase in greenfield project sanctioning. This should continue to benefit the floating production and subsea contractors and suppliers, although the precipitous rise in new FPSO orders could squeeze engineering and fabrication/shipyard capacity.
Meanwhile, oil and gas operators are seeking to reduce the carbon footprint of their operations to counteract the rise in greenhouse gas emissions. Indeed, upstream oil and gas is low on the list of energy-related activities that release greenhouse gasses, but operators and contractors are doing their part to help curb the trend. One approach is through investing in low-carbon emitting resources for power generation, such as renewables.
Offshore, the synergies between oil and gas and wind development are providing new market entry opportunities. A recent IEA report estimates that about 40% of the full lifetime cost of an offshore wind project, including construction and maintenance, has synergies with the offshore oil and gas industry. This translates into a market opportunity of about $400 billion in Europe and China over the next two decades, according to the report.
Offshore recently met with BSEE Director Scott Angelle to discuss the regulatory agency’s role and remit for the emerging US wind industry; recent policy updates for drilling and production operations in the US GoM; cybersecurity; and other important issues. Also included in this month’s executive interview series is a discussion with Offshore and Richard Clark, Senior Vice President and head of Kosmos Energy’s Gulf of Mexico business unit.
On behalf of the Offshore team, thank you for your ongoing interest in and support of the magazine.
