Offshore staff
OSLO, Norway — Global expenditure on oil and gas and energy developments should average more than $920 billion annually during 2022-28, according to Rystad Energy, hitting a peak of $1 trillion in 2025.
And even if a downturn in oil and gas sets in after 2025, oilfield service (OFS) suppliers should be able to ride this out by branching into other sectors, the consultant claims, such as geothermal energy, hydrogen, offshore wind, and carbon capture, utilization and storage.
All these segments look set to grow in nominal terms, Rystad added, led by suppliers targeting equipment and materials and others providing operations and maintenance services.
Suppliers are careful not to overinvest in more capacity as rigs, vessels, plants and other units in the supply chain are affected by natural wear and tear. This has led to improved prices over the past year for offshore rigs, land rigs, frac fleets, proppant, oil country tubular goods, vessels and subsea infrastructure.