Skip to main content

Offshore field sanctioning nears peak

Published by
Oilfield Technology,


The annual growth rate in the global offshore oilfield services market will likely be halved after 2022, according to Rystad Energy.

The independent energy research and consultancy headquartered in Norway with offices across the globe forecasts that the service market will slow from 7% annual growth per year in 2019-2022 to only 3% from 2022 to 2025.

Commenting on the numbers, Audun Martinsen, Head of Oilfield Service Research, says:

“Just how things ultimately play out in the offshore market will depend to a large extent on whether OPEC, with help from Russia, will decide to take serious measures to stabilize the market over the next years. If the group decides to rein in production to protect commodity prices, momentum in the offshore market could continue. If not, the offshore renaissance party seems destined to come to an end in 2022.”

He added:

“Higher oil prices were a primary cause of the recent upstream spending spree and – in keeping with the cyclical nature of this industry – the added production from those investments will soon help to put downward pressure on oil prices, which in turn will undermine field sanctioning activity post-2020.”

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/22052019/offshore-field-sanctioning-nears-peak/

You might also like

Howden secures compressor contract for Majnoon oilfield, Iraq

Howden will supply two screw compressor packages to Majnoon oilfield, near Basrah, Iraq. With Howden’s compressor solution, the Majnoon oilfield will save 42 242 t of carbon emissions per year – the equivalent of annual fossil fuel emissions for 9100 cars.

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

Upstream news Offshore news