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.”
“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/