Business Briefs

Data Briefs

Dec. 11, 2023

At-a-glance statistics and analysis of the offshore energy industry

Editor's note: This Data section first appeared in the November-December 2023 issue of Offshore magazine. Click here to view the full issue.

Subsea contracting activities to remain robust

Subsea EPC award value in 2023 is forecast to close at approximately US$15.5 billion, driven by greenfield activities in the Americas, brownfield expansions in the Middle East and a rebound in project sanctioning in Africa. Overall, subsea tree demand in 2023 is expected to close just below 300 units, with a 15% growth anticipated in 2024 at 340 subsea tree units. Subsea EPC award value is forecast to average US$17 billion annually over the 2024-27 period, underpinned by oil prices trading above $70/bbl.—Westwood Global Energy Group

European offshore wind sees 2% annual growth in installations

Several developers and governments have announced delays or potential cancellations of projects in the UK and Denmark due to increasing development costs, difficulty in securing desirable offtake deals and regulatory changes. These two nations are now expected to miss their 2030 offshore wind targets by a larger margin than anticipated. To get back on a growth trajectory, this will require considerable changes to project development and permitting processes as well as continued investment in R&D to keep costs affordable while maintaining efficiency.—Rystad Energy

OSV market sees new opportunities beyond O&G

Due to a new focus on wind, the OSV sector is growing at a rate of 30% year on year. While this growth is global, the Americas are an emerging and crucial market for the fleet. North America is seeing the construction phases of its first commercial wind farms underway at Vineyard 1 and South Fork. Plus, recent licencing rounds have seen high interest, and there are more to follow, with the majority located to the Northeast. Spinergie has indexed 14 North American projects that are in either the assessment and feasibility or development planning stages. In addition, over 50 are in the initial stages of development. It should also be noted that there is a burgeoning market in South America, namely in Brazil and Colombia. Each country has a licensing round planned for later this year.—Spinergie