Subsea equipment spending increase forecast for 2012-2016
July 20, 2012
The subsea hardware market is expected to continue its recovery following the global economic crisis and the Deepwater Horizon accident says the Douglas-Westwood update of its “World Subsea Hardware Market Forecast” for 2012-2016.
Subsea spending forecast
Offshore staff
CANTERBURY, UK –The subsea hardware market is expected to continue its recovery following the global economic crisis and the Deepwater Horizonaccident says the Douglas-Westwood update of its “World Subsea Hardware Market Forecast” for 2012-2016.
The forecast estimates spending of $135 billion over the five-year period, or 14% more than thepreceding five years. West Africa, the Gulf of Mexico, and Brazil will account for at least 65% of this spending on subsea production and SURF hardware.
Outside of these three areas, subsea pipeline construction is expected to drive spending. Eastern Europe and the FSU spending on gas export lines could reach $21 billion, to lead the world in this category.
Deepwater hardware expenditure is forecast to grow considerably over the next five years. Developments in water depths greater than 500 m (1,640 ft) will account for more than half of the total forecast market spend; illustrating the increasing importance of harder-to-produce reserves.
