Offshore oil and gas investments to top $200bn by 2025
Offshore rigs, vessels, subsea and floating production storage and offloading (FPSO) activity are all set to flourish, according to a new analysis by Rystad Energy.
The offshore oil and gas sector is set for the highest growth in a decade in the next two years, with $214bn of new project investments lined up.
Rystad Energy research found that annual greenfield capex will break the $100bn mark in 2023 and in 2024 – the first breach for two straight years since 2012 and 2013.
Offshore activity is expected to account for 68% of all sanctioned conventional hydrocarbons in 2023 and 2024, up from 40% between 2015-2018. In terms of total project count, offshore developments will make up almost half of all sanctioned projects in the next two years, up from just 29% from 2015-2018.
These new investments, led by the Middle East, will be a boon for the offshore services market, with supply chain spending to grow 16% in 2023 and 2024, a decade-high year-on-year increase of $21bn, Rystad Energy noted.
“Offshore oil and gas production isn’t going anywhere, and the sector matters now possibly more than ever. As one of the lower carbon-intensive methods of extracting hydrocarbons, offshore operators and service companies should expect a windfall in the coming years as global superpowers try to reduce their carbon footprint while advancing the energy transition,” said Audun Martinsen, head of supply chain research with Rystad Energy.