Offshore staff
LONDON — Rising oil and gas demand and supply disruption caused by the war in Ukraine could spur increased relatively high-capex deepwater and ultradeepwater projects reliant on subsea systems, according to GlobalData.
The data and analytics company’s new report, "Subsea Technologies for Oil and Gas Offshore Exploration and Production – Thematic Research," reviews the trends and opportunities.
Oil and gas analyst Ravindra Puranik said, “With numerous countries shunning Russian oil and gas, there is an increasing need to ramp up production from other regions.”
Producers in the subsea hotspots offshore the UK and Norway continental shelves are taking steps to ramp up their E&P activities to support the pivot away from Russian imports. The UK government is playing its part by staging a new licensing round for North Sea blocks this fall.
Norway has recently permitted its offshore operators to raise output from several oil and gas fields.
"Subsea technology has proven to be reliable in waters at a variety of depths," Puranik said.
“Since most of the production, processing, storage and power distribution equipment is moved on to the seabed, it minimizes the capex and opex in offshore environments. This is encouraging companies to make significant investments in subsea projects," Puranik continued. “High capital costs are a major deterrent for deepwater oil and gas projects. However, several efforts being directed toward reducing costs, including streamlining material procurement, optimizing subsea architecture and simplifying equipment installation, are helping in reducing the overall costs.
“Furthermore, subsea contractors are achieving significant cost reductions by lowering the project execution cycle time.”
07.28.2022
