PROJECT AND MARKET TRENDS
The Benefits of Flying Unmanned Aircraft Vehicles at Scale for Asset Managers
Ground sensors on assets over a broad area have limited returns on investment if the asset life cycle is less than 10 years, and obsolescence of the technology if it exceeds 10 years. Complementing sensors with aerial remote sensing at scale may help to mitigate these issues.
Financing FLNG Facilities—What Lies Ahead?
Although the FLNG concept has been around for decades, only three units are in the water and operational or under commissioning as of 2018. As the mitigation of technological risks is demonstrated, commercial risks become the focal point and the challenge to financing the capital-intensive projects.
Where are We in the OFS Cycle?
Oil prices have recovered somewhat and operators are making money again. So why haven’t the service companies been invited to the party?
Norway Leading the Oilfield Service Comeback
The cost cuts made during the downturn and the recent increase in oil prices have led to some global offshore projects becoming economically viable. Norway is leading the comeback.
P&A Sowing Harmony Among Operators?
With no money to be made, P&A is one area where operators can put aside their hyper-competitiveness to work together. Members of the recently formed PACE network discussed the virtues of collaboration at the Decommissioning and Abandonment Summit 2018.
Government, Industry, Consumers, and Arithmetic: How Will the Rise of Electric Vehicles Impact Oil Demand?
Even if EVs reach cost and performance parity with conventional combustion engines, a lot of questions remain about how long it will take for consumers to get comfortable that parity is real, and for manufacturers to turn over enough volume to make a big enough impact on the oil industry.
Oilfield Services Q3 Review: Promising Outlook After Tough Times
A rise in oil prices close to 3-year highs should further stimulate a recovering oilfield services and equipment sector, despite lower than expected late-2017 activity in US shale.
Decommissioning – Challenge Accepted
With $102 billion of decommissioning-related expenditure forecast to 2040 in Western Europe, opportunities are ripe for the supply chain to compete with innovative and cost-effective solutions for the E&P operators.
US LNG Exports Expected To Increase as New Facilities Come On Line
The US Energy Information Administration reports that increased liquefaction and utilization from new facilities has led to a jump in LNG exports in 2017.
Effective Site-Based Project Portfolio Execution Requires Owner, Contractor Staffing Balance
Independent Project Analysis researchers took a closer look at site project system staffing approaches including full alliance, owner engineering, contractor engineering, and core staffing to determine the effect of staffing characteristics on capital project outcomes.
SNC-Lavalin Wins Award for Fast-Tracking of Cardon IV Facilities Project
SNC-Lavalin was recognized by the Rice Global Engineering & Construction Forum’s Award of Excellence for the fast-track installation of a 150 MMcf/D natural gas processing plant for production from the offshore Venezuela Perla field.
GATE Energy Joins Ranks of Contract Awardees for Noble’s Leviathan Project
GATE Energy is the most recent contract awardee for Noble Energy’s Leviathan project offshore Israel. It will provide the commissioning of the production platform for the megaproject.
Reliance Awards McDermott Contract for KG-D6 Subsea Development
McDermott announced a letter of award for a contract from Reliance Industries for the deepwater KG-D6 subsea field development in the Krishna Godavari Basin.
Partnership Targets Stranded Fields With Fast-Deployment FLNG Vessels
Add Energy has partnered with Transborders Energy and will work with TechnipFMC and MODEC to develop a 1.0-MTPA FLNG vessel for small-scale stranded fields.
Dealmakers: Water Transport, Disposal Companies Tap Into Permian Basin
The demand for water and disposal services in the Permian Basin has piqued the interest—and investments—of companies eager to acquire existing pipeline infrastructure and saltwater disposal facilities to capitalize on the growing need.
What Project Sanctions Tell Us About the State of the Upstream Sector
Many of the biggest players in the industry—particularly the majors—have adapted their portfolios for “lower for longer” and are once again sanctioning big projects. While we are not back to the heady days of 2010–2014, we have left behind the dark days of 2015–2016.
More Contracts Awarded for Mozambique’s Coral South FLNG Project
Air Products, BHGE, Norsafe, and Sofec won contracts for Eni’s Coral South FLNG project in Mozambique.
TechnipFMC Awarded EPCI Contract for Husky’s West White Rose Project
Husky Energy awarded the EPCI contract for its $1.6-billion expansion project, West White Rose, to TechnipFMC. It includes the supply and installation of subsea equipment.
BP's Vessel Khankendi Completes Sea Trials in the Caspian
Baku Shipyard completed the sea trials of BP's subsea construction vessel Khankendi, which is being constructed for the Shah Deniz Stage 2 project.
Acteon and Actuant Assets Change Hands
Acteon Group is buying Actuant’s Viking SeaTech business at a steeply discounted price of $12 million compared to the $225 million that Actuant paid in 2013 to acquire the company, and Actuant is buying Acteon’s Mirage for $16 million.
Cryogenic Hose Technology: Transfer Solutions Keep Pace with the March of LNG
Global trade for LNG is projected to rise by 50% by 2020. There is a clear acceleration in demand for small- and medium-scale LNG, necessitating splitting of LNG into smaller load parcels. Transfer methods applicable to deeper water, smaller LNG carriers, and harsh environments are critical.
Eni Finalizes Mozambique FLNG Investment, Contract Rollouts Begin
Eni finalized a USD 7-billion investment in the Coral South FLNG project, the first offshore development in Mozambique. Service and equipment providers are announcing their awarded contracts.
Decommissioning—Will Yards Become a Bottleneck?
Will the UK decommissioning yards have the capacity to handle the anticipated workload of 261 platforms? Some of the pressure may be relieved as a result of the continuing production from many fields forecast to be abandoned in the current price environment as Opex costs offshore UK have fallen.
Mapping the Western Canadian Crude Oil Market Complex
Canada will become the world’s fifth-largest producer of crude oil in 2017. The solvent-assisted-SAGD poses the largest advancement in production techniques in the oil sands, and if scaled up, could further reduce extraction costs.
Decommissioning Expenditure in Western Europe To Top USD 100 Billion From 2017 to 2040
Western Europe is the first area outside of the US Gulf of Mexico to see large-scale decommissioning. Well decommissioning is forecast to account for the majority of the expenditure.
Vessel Contractors Reshape for the Rebound
As the offshore market downturn and bankruptcy take their toll among vessel contractors, industry consolidation and bargain vessel acquisitions take shape.
Decomm and Offshore Wind Revive Heavy-Lift Industry
Heavy-lift vessels aim for opportunities in decommissioning in UK North Sea and Norway and offshore wind projects.
Helicopter Services Market in Slow Ascent
Despite a turbulent time for most offshore sectors over the past 2 years, Douglas-Westwood’s latest analysis from the World Offshore Helicopters Market Forecast 2017–2021 projects USD 18 billion in oil- and gas-related expenditure over the next 5 years.
Decreased Investment in Online Pipelines To Cause Lag in Installation at End of Decade
The downturn and lack of investment for new projects are likely to impact the onshore pipeline industry toward the end of the decade. But the long-term drivers for pipeline construction, notably the increased demand for gas in regions such as Asia, remain stable.
World Offshore MMO Market: A Steady Return to Growth
Since the recent oil price downturn, the offshore MMO market has witnessed a significant decline in global expenditure. The most severe decline in total regional expenditure is anticipated to occur in North America, with modifications expenditure forecast to drop by 56% between 2014 and 2016.
AUVs Gain Momentum in Oil and Gas Operations
AUVs have evolved from an emerging technology with niche uses to a viable solution and an established part of operations in various marine sectors. Douglas-Westwood’s AUV Market Forecast considers the prospective demand for AUVs in the commercial, military and research sectors over the next 5 years.
Onshore Spending on the Cusp of Recovery
Douglas-Westwood’s quarterly World Oilfield Services Market Forecast and World Oilfield Equipment Market Forecast continue to suggest that 2016 marks the start of a barren period for the global oilfield services and oilfield equipment sectors, with onshore looking more positive than offshore.
FLNG Outlook – Pioneering Export Facility Arrives; While Regasification Units Increase
Douglas Westwoods' world FLNG market forecast for the period 2016-2022. A stormy ride is expected for the LNG industry, as the fall in natural gas prices limits investment in capital-intensive liquefaction projects.
Protracted Low Oil Price Impacts Deepwater Expenditure
Continued suppression of global oil prices has questioned the viability of several large and ultradeepwater projects. Article covers Douglas-Westwood’s deepwater expenditure forecast for the 2016–2020 period, and the effect of reduced rig demand on deepwater Capex growth.
Decommissioning Market To Boom From 2016 to 2040
Many of the platforms in the North Sea are late in life, operating long past their initial design expectations due to costly life-extension work. Decommissioning has moved slowly, but the low price environment is likely to accelerate the trend.
Iranian Oil and Gas Production Shows Significant Upside Potential, but Limitations Remain
Iran’s oil and gas sector has been significantly affected by the introduction and tightening of international sanctions in recent years. represents a significant step forward in terms of normalizing the country’s relations with the global community.
Oversupply of Subsea Vessels To Continue Until Gradual Recovery in Operators' Spending
Douglas-Westwood (DW) expects the expenditure of subsea vessel operations to begin a gentle upswing after next year.
World Offshore MMO: From Slow to Grow
Low prices will constrain maintenance and modifications in the coming year. However, maintenance can only be delayed so long, leading to a long-term outlook of growth in the market for maintenance, modifications, and operations.
Subsea Infrastructure Growth Tempered by Oil Price Collapse
Projects are being delayed or deferred due to low oil prices, which is affecting the market for subsea, umbilicals, risers, and flowlines (SURF).
Despite Imminent Project Delays, Deepwater Spend To Total USD 210 Billion From 2015 to 2019
Operators have announced reduced budgets and delayed deepwater project sanctions. Despite these reductions, the long term outlook is for increased deepwater spending.
Floating Production Systems Expenditure To Total USD 81 Billion From 2015 to 2019
Though the projects that have already been sanctioned will ensure that spending in the FPS sector will remain high over the forecast period, the growth in FPS market is significantly less than expected due to the collapse in oil prices, and installations in 2018 will decline.
LNG Capital Expenditure To Total USD 259 Billion in the Next 5 Years
Growing world demand for natural gas will drive increases in capital expenditures on LNG through 2019.
Increasing Activity, Complexity, and Water Depths To Push Subsea Vessels Operations Cost Higher
Over the next 5 years Douglas-Westwood (DW) expect USD 122 billion to be spent on global subsea vessel operations—an increase of 64% compared with the previous 5-year period.
Floating Production Systems Expenditure To Total USD 99 Billion From 2014 to 2018
The market for floating production systems is growing rapidly, with spending from 2014-2018 expected to increase more than 100% from the prior 5-year period. Factors such as increased local content contribute to growing expenditures.
Deepwater Spend Forecast to Surge from 2014 to 2018
Deepwater capital expenditure is expected to more than double compared to the previous 5 year period. Douglas-Westwood also expects a continued trend toward exploration in ultradeepwaters in depths greater than 2000 m.
ROV Work-Class Operation Expenditure to Grow by 80%
Expenditure is forecast to increase more than operational days because of the move toward deeper waters and more complicated offshore field development programs, which demand higher specification, higher cost ROVs.
Subsea Vessel Operations Market Poised for Increase in Demand
The global subsea vessels market is expected to reach more than USD 100 billion in the next five years, with demand up by 23%.
Global Capital Expenditure on LNG Facilities Continues Upward Trend From 2013 to 2017
Strong demand for natural gas is driving a recovery in liquefied natural gas (LNG) expenditures worldwide, with expenditures expected to reach USD 228 billion in the next five years.
Subsea Hardware Spend Forecast To Double From 2013 to 2017
Deepwater activity is booming in the Golden Triangle (Brazil, west Africa, and the Gulf of Mexico), which is forecast to account for 44% of total subsea hardware expenditure. Trunkline projects are of particular significance.
World Demand for Onshore Pipeline Construction to Grow From 2013 to 2017
Pipelines play a vital supporting role in the energy supply chain as one of the most efficient modes of hydrocarbon transportation. Unconventional resource development and LNG have set the stage for growth in onshore pipelines.
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07 May 2018