ANALYSIS of 19 target countries and 26 key onshore and offshore market sectors – ranging from land drilling equipment to offshore operations – has revealed that overall expenditure levels are expected to total $2trillion over 2009-13.
These are among the key findings of a new report commissioned by Norwegian oil&gas partners INTSOK from energy business analysts Douglas-Westwood. Essentially, this is the same market as UK companies have the opportunity to pursue, if they are so minded and assuming they have the capability, which, in drilling, first-division seismic and heavy fabrication, clearly they do not.
Addressing more than 300 delegates at INTSOK’s 8th annual International Business Days conference in Oslo some days ago, Douglas-Westwood chairman John Westwood outlined his views on the current market turmoil, the prospects for recovery and the expected outcomes in terms of future industry expenditure.
“The current economic environment has hit activity levels hard. However, by 2011, it is forecast that overall expenditure will have recovered, and beyond this, the majority of the selected market sectors are expected to exhibit growth through 2013,” Westwood said.
“Within the offshore target markets, expenditure is expected to grow from $163billion in 2009 to $222billion in 2013, and onshore markets from $170billion to $229billion.
“Over the next five years, we forecast that the total expenditure within the onshore and offshore INTSOK target markets will total nearly $2trillion, compared with about $1.4trillion over the previous period.”
On the domestic market, Westwood noted that 2009 marks the 40th anniversary of the discovery of Norway’s first field, Ekofisk.
“However, it faces a future of declining oil production.
“Norway still has huge gas potential, particularly in the Arctic, and it is essential for future security of European gas supplies that it uses its proven ability to develop reserves in such environmentally sensitive areas.”