A recent surge in final investment decisions (FIDs) on offshore oil and gas projects has set the scene for a healthy increase in offshore investments next year, according to analyst Rystad Energy. Close to 100 offshore projects are set to be sanctioned in 2018. Offshore investment levels should as a result rise in 2019, after four straight years of contraction.
“Our offshore activity index is pointing to annual growth rates of about 6% towards 2022, thereby returning to the high activity levels seen in 2014,” said Audun Martinsen, Head of Oilfield Research at Rystad Energy. “Coupled with annual service price inflation of 5%, offshore oilfield service purchases are projected to grow by 11% per year towards 2022.”
