Douglas-Westwood Forecasts USD 135 bln Expenditure on Subsea Hardware over 5 Years
The subsea hardware market is expected to recover this year, following the global economic crisis and the repercussions of the Deepwater Horizon accident in 2010. Douglas-Westwood (DW) forecast that the subsea sector will continue its growth trend, reaching an annual total of $32 billion in expenditure by 2016.
DW’s first edition of The World Subsea Hardware Market Forecast was published in 2011 to great acclaim. The new edition builds on DW’s market knowledge and provides a comprehensive and enhanced analysis of the subsea hardware market through to 2016.
Rod Westwood, Research Manager at DW, commented, “Expenditure of nearly $135 billion is forecast over the next five years on subsea hardware, an increase of 14% over the preceding five-year period. The ‘Golden Triangle’ of subsea will continue to dominate upstream hardware expenditure; West Africa, GoM and Brazil, with Africa remaining the largest market. Growth offshore Brazil is driven directly by Petrobras’ long-term deepwater and ultra- deepwater strategy.”
Deepwater hardware expenditure is forecast to grow considerably over the next five years. Developments in water depths greater than 500 metres will account for over half of the total forecast market spend; illustrating the increasing importance of harder-to-produce reserves.
The outlook for the subsea hardware market shows long-term growth potential. The technology deployed is unlocking reserves that would historically have been impossible to access, but at a price, and as a result DW’s report shows the sector has become a very sizable opportunity for the oilfield service and equipment community. Subsea developments continue to account for an ever increasing share of offshore activity.
Source: Douglas-Westwood, May 31, 2012