Deepwater Capex forecast at $223 billion during 2013-2017
A new report from Douglas-Westwood shows the outlook for the deepwater business to be one of major long-term opportunity. As deepwater projects become increasingly capital-intensive there is an economic challenge for exploration & production (E&P) companies but a significant potential prize for oilfield service and equipment vendors.
Report author, Rachel Stonehouse, commented, “The ‘Golden Triangle’ of Latin America, the Gulf of Mexico and West Africa will dominate deepwater capex over the next five years, but African developments – largely concentrated in Angola, Ghana and Nigeria – and Brazilian projects dominate the forecast spend.
“Brazil is likely to experience substantial growth, exceeding Africa’s deepwater expenditure towards the end of the forecast period, with activity driven by Petrobras’s development of its pre-salt Campos and Santos fields.
“Despite the delays caused by nations’ local content requirements and geopolitical disputes, significant investment will occur in the Golden Triangle, whilst some regions with historically small deepwater activity will experience astounding growth over the next five years. However, continuing technological advances and increased cost-efficiency will be required to ensure the viability of future prospects in both existing and new deepwater provinces.
“Recent discoveries in East Africa will be developed towards the end of the decade and West African pre-salt also shows longer-term potential. Furthermore, barriers to financing are being reduced as markets show signs of recovery. The bottom line is an extremely positive outlook for the deepwater industry, with even more projects coming to fruition beyond the report’s forecast period.”
Douglas-Westwood’s (DW) Deepwater Market Forecast 2013-2017 analyses future activity in the deepwater sector, driven by thorough scrutiny of identified fields/prospects in the Douglas-Westwood Oil and Gas Projects Database. Data and analysis are strengthened by extensive consultation with many companies from all sectors of the deepwater market.
Deepwater – Douglas-Westwood forecast Capex of $223 billion during 2013-2017
