Douglas-Westwood research predicts FPS spend to 2014

Offshore staff

CANTERBURY, UK -- Research released by energy business analysts, Douglas-Westwood predicts worldwide FPS expenditures will total $44.8 billion between 2010 and 2014.

According to The World Floating Production Report 2010-2014, the industry’s move into deeper waters, a growing need to develop marginal fields, and an increasing emphasis on fasttrack and/or phased developments will drive the sector’s long-term growth.

The report predicts Latin America’s market share will be equivalent to almost a third of global capex, followed by Africa and Western Europe. The three regions are forecasted to share about three quarters of predicted capex.

The research indicates the Deepwater Horizon incident is unlikely to impact the FPS installations at a worldwide or North American level between 2010 and 2014.

“It is our view that the long-term prospects for the offshore and FPS sectors are robust,” says Lucy Miller, the report’s lead author. “Floating solutions will continue to be required to bring onstream new offshore reserves and, despite the recent troubles in the US Gulf of Mexico, deepwater developments are essential for the industry to bring onstream new reserves to satisfy global demand.”

06/08/2010