New forecast shows offshore spend, production trending up

Total offshore expenditure shows a steady rise from $123 billion in 2004 to $148 billion in 2008, with forecasts continuing to increase to $161 billion in 2013.

Offshore staff

GLASGOW, Scotland -- Total offshore expenditure shows a steady rise from $123 billion in 2004 to $148 billion in 2008, with forecasts continuing to increase to $161 billion in 2013. The cumulative 2009-13 forecast total of $784 billion is 16% higher than the 2004-08 total, according to Scottish Enterprise in its new series of Spends and Trends reports, which assess the prospects for the offshore oil and gas industry in Norway, the US Gulf of Mexico, the Middle East, the Mediterranean, West Africa, South America, Asia-Pacific, and the Caspian Sea.

Total offshore oil production forecasts show a 23% increase from 21 MMb/d in 2008 to 27 MMb/d in 2013. The reports also forecast that offshore gas production will increase by 47% from 704 bcm in 2008 to 1,003 bcm in 2013.

The pattern of offshore expenditure is expected to see significant geographical changes with spending in the more mature areas such as the US Gulf of Mexico predicted to decline, while in West Africa, the Mediterranean and the Caspian Sea offshore expenditure is forecast to increase rapidly, according to the reports.

The reports cover the key regions of the global industry with the exception of the UK Continental Shelf (UKCS), which was the subject of a separate report in 2007.

Offshore expenditure and regional oil and gas production forecasts for the period 2009-13 are set out alongside the 2004-08 figures; total expenditure comprises capex, opex, exploration, and decommissioning spend. Exploration and appraisal prospects are also included.

08/04/2009

More in Regional Reports