Subsea Vessel Operations & Hardware Market to Rebalance – Expenditure to Total $134bn over 2017-2021 period
Sustained low oil prices have plagued the oil & gas industry since mid-2014 and have had a significant financial impact on oil & gas operators and their supply chain. This has been exacerbated for vessel owners due to the issue of oversupply, which, coupled with limited project sanctioning over the past 30 months has resulted in low utilisation – impacting day rates and overall expenditure.
However, with vessel owners scrapping their non-competitive fleets and deferring the delivery programme of some newly built vessels, utilization is expected to improve over the forecast. In line with this, vessel day demand is expected to grow over the forecast at a 2% CAGR, supporting an increase in dayrates in the medium term. In addition, OEMs should start to see new orders, with a number of projects expected to be sanctioned within the next 18 months. As a result of this, global subsea hardware & vessel operations expenditure is expected to total $134 billion (bn) over the forecast period.
Subsea hardware will account for 62%, whilst subsea vessel operations will account for 38% of total expenditure. Line pipe (22%) and subsea production systems (22%) will remain the principal drivers of expenditure, whilst subsea IMR vessel related activity will account for 15% of global expenditure at a 6% growth compared to the 2012-2016 period. As production in shallow water basins continues to decline, the development of remote and marginal fields will act as fundamental drivers for subsea hardware and vessel operations expenditure.
Brazil, South East Asia, USA and West Africa will account for 44% of global expenditure between 2017 and 2021 much of this will be based on the volume of well stocks, large installed base of infrastructure, mega-projects sanctioned before the oil price collapse and greenfield projects that have been re-engineered and are expected to reach FID in the near-term. Outside of these areas a number of new frontiers will see expenditure, including the development of East African gas basins and the fast track development of new discoveries such as Liza and Zohr reserves.
The World Subsea Vessel Operations & Hardware Market Forecast 2017-2021 analyses the factors influencing global subsea market and utilises extensive industry consultation to provide detailed insight on demand and supply for both subsea hardware and vessel operations.
Drivers & indicators – a review of factors influencing subsea markets, including: growing global energy demand; continued development of offshore reserves; oil & gas prices; field complexity, technology and cost evolution; the role of deepwater and how all of these drivers impact the subsea vessel operations market.
Supply chain analysis – detailing the key players within the subsea hardware market and analysis of top manufacturers’ subsea orders and backlog. Global vessel supply trends for DSVs, MSVs, Flexlays, Pipelays and LWIVs with historic vessel deliveries from 1960-2016 and orderbook segmented by vessel type and owner.
Regional analysis – Units/km, vessel day demand and expenditure by market with trend commentary for North Africa, South & East Africa, West Africa, Australasia, South East Asia, Asia: Others, Eastern Europe & CIS, Brazil, Latin America: Others, Middle East, Canada, USA, Norway, UK and Rest of Western Europe.
Why purchase the World Subsea Vessel Operations & Hardware Market Forecast?
DW’s market forecasting is trusted by sector players worldwide, with clients including the world’s top-10 oil & gas companies, top-10 oilfield services companies and top-10 private equity firms.
An essential report for equipment manufacturers, offshore vessel operators, steel mills, pipeline operators, oilfield service companies, government agencies, financial institutions and oil & gas companies who need quality, up-to-date information and commercial insight to assist with their strategy in the pipeline sector.
Our proven approach includes:
Unique and proprietary data – updated year-round from published sources and insight gained from industry consultation.
Detailed methodology – the report uses research from DW’s ‘Oil & Gas Database’, an in-house information system exclusive to DW. Our global analyst team is involved in the gathering and analysis of subsea market data through primary research and professional networks. A project-by-project review of development prospects drives a data-rich market model and forecast.
Comprehensive analysis – Unit/km, vessel day demand and expenditure are segmented by component and vessel type (DSV, LCV, ROVSV, Flex-lay, Reel-Lay & Pipelay) for each region, covering the 2012-2021 period.
Concise report layout – consistent with DW’s commitment to delivering value for our clients, all our market forecasts have a concise layout consisting of industry background and supporting materials condensed to enable quick review with ‘speed-read’ summaries of key points throughout.