CANTERBURY, UK – Subsea hardware spending will double to $124 billion in 2013-2017 predicts Douglas-Westwood.
The report notes that with fewer conventional opportunities, high oil prices, and more advanced subsea hardware solutions more fields are being developed in deeper waters, in remote locations, and in more extreme metocean conditions.
In addition, the offshore industry is challenged to recover smaller, more widely scattered reserves.
The growing use of subsea processing technology, such as subsea separation, multi-phase pumping, and gas compression, as an alternative to the use of fixed processing platforms will also tend to provide upside potential.
“Our outlook takes a conservative view of stated future prospects, with some 60% additional slated projects that we have removed from our forecast,” says lead report author Angela MacCormack. “Given capacity constraints evident in the industry, we believe that this approach provides a realistic appraisal of future prospects.”
The outlook for the subsea hardware market shows long-term growth potential, particularly in Africa, Asia/Pacific and Brazil and in addition new markets are developing in the Eastern Mediterranean and East Africa, said MacCormack.