Subsea Production & Processing Systems Market Outlook 2018-2028
Visiongain has calculated that the global Subsea Production & Processing Systems Market will see a capital expenditure (CAPEX) of $16.41 bn in 2018. Read on to discover the potential business opportunities available.
The Subsea P&P systems market can be broken down into the seven elements - Umbilicals, Risers, Flowlines, Controls, Trees, Manifold and Tie-Ins. Subsea P&P systems can be used to increase production of a pre-existing site.
One of the main drivers for installation of subsea P&P systems remains global energy demand. Growth is expected for years to come, with the growing developing economies driving this. As a response, offshore production will move further into deepwater and ultra-deepwater, where a large amount of the remaining hydrocarbon reserves remain. Since drilling of the first well below 3,000m was completed in 2003, there have been numerous major discoveries in previously unexplored territories around the world.
A global shift in E&P to deep and ultra-deepwater is being witnessed. Whereas 20 years ago the majority of subsea wells were located in shallow water, a majority proportion is now located in water depths classified as deepwater. The recent decline in oil prices will prolong expansive developments in deeper waters which have considerably higher costs. However, when the oil price environment stabilizes, companies will become increasingly interested in these projects.
Due to the extreme water depths and pressures in these environments, reliance on subsea umbilicals, risers and flowlines (SURF) systems in deepwater and ultra-deepwater accelerates. As E&P activity increases in these locations, in a quest to satisfy global energy demand, the pressure on subsea P&P systems intensifies. Without these, subsea production halts. E&P in deepwater and ultra-deepwater poses serious challenges to the economic viability of new discoveries.
The oil price fall is putting a caution into capital markets, with stagnant European economies and slowing growth in China all impacting the potential growth of the global subsea P&P systems market. These market conditions have impacted the wider oil and gas market, as well as more specifically the subsea market, with investments becoming uncertain, and credit conditions tightening. Although market sentiment has improved, fears continue to circulate about the further economic downturn, as such impacting the feasibility of new subsea projects. With the potential for investment in oil and gas to slow, the subsea market will experience delays in reaching maximum growth rates.
Visiongain’s global Subsea Production & Processing Systems Market report can keep you informed and up to date with the developments in the market, across six different regions: Africa, Asia Pacific, Gulf of Mexico, North Sea, South America and Rest of the World.
With reference to this report, it details the key investments trend in the global market, subdivided by regions, capital expenditure by hardware and water depth. Through extensive secondary research and interviews with industry experts, Visiongain has identified a series of market trends that will impact the Subsea Production & Processing Systems Market over the forecast timeframe.
The report will answer questions such as:
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