Protracted Supply Overhang & a Gradual Recovery in Subsea Vessel Operations Spend
Low hydrocarbon prices, coupled with excessive newbuilding programmes will result in low utilisation impacting day rates and overall expenditure over the forecast period. However, with eventual recovery at the end of the forecast period, subsea vessel day demand is set to grow at a 5.2% CAGR over the next five years. Global subsea vessel operations expenditure is expected to increase by 29% when compared to the preceding five-year period, totalling $97.7 billion (bn) from 2016 to 2020.
Africa, Latin America and North America are expected to account for 47.5% of global expenditure between 2016 and 2020. These regions remain vital to subsea vessel demand over the forecast period despite falling oil prices, project delays and political instability associated with Africa. The development of East African gas basins in the Indian Ocean will contribute to subsea vessel demand in the latter years of the forecast period.
Asia will be the single largest market with anticipated 18.7% of expenditure over the next five years, largely driven by shallow water inspection repair & maintenance (IRM) and pipelay-related activities.
Australasia has the fastest growth rate of all of the regions at a 46.8% CAGR due to massive offshore gas field developments required to support its ambitious LNG export commitments. Activity in the Middle East will represent 9% of the total global subsea vessel expenditure.
Field development (36%) and IRM (40%) will remain the principal drivers of global subsea vessel demand and expenditure. As production in shallow water basins declines, activities in deeper water are set to increase as deepwater development becomes inevitable. However, operators will continue to invest in the optimisation of existing shallow water fields.
The World Subsea Vessel Operations Market Forecast 2016-2020 analyses the main factors driving demand for MSV, DSV, Flexlay, LWIV and Pipelay vessels, supported by analysis, insight and industry consultation and includes:
- 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.
- Vessel fleet supply side analysis – global vessel supply trends for DSVs, MSVs, Flexlays, Pipelays and LWIVs with historic vessel deliveries from 1960-2015 and current vessel supply and orderbook segmented by vessel type and owner.
- Regional analysis – expenditure and vessel day demand by market with trend commentary for Africa, Asia, Australasia, Eastern Europe & FSU, Latin America, Middle East, North America, Norway, UK and Rest of Western Europe.
Why purchase the World Subsea Vessel Operations 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.
The report is essential for financial institutions, vessel owners, equipment manufacturers, offshore engineering, construction, operations & maintenance companies and contractors, E&P operators, oil & gas companies and government agencies & departments wanting to make more informed investment decisions.
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 a unique market model specifically developed in collaboration with leading subsea industry participants. Based on the DW’s proprietary databases covering vessels and offshore oil and gas developments, the report includes a market forecast with analysis based on unique data.
- Comprehensive analysis – expenditure and vessel day demand are segmented by field development, IRM, pipeline and subsea intervention for each region, covering the 2011-2020 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.