The subsea hardware market is expected to recover this year, following the global economic crisis and the repercussions of the Deepwater Horizon accident in 2010, according to a report out today.
According to the World Subsea Hardware Market Forecast by Douglas-Westwood, the subsea sector will continue its growth trend, reaching an annual total of £20billion in expenditure by 2016.
Rod Westwood, research manager at Douglas Westwood, said: “Expenditure of nearly £79billion is forecast over the next five years on subsea hardware, an increase of 14% over the preceding five-year period.
“The ‘Golden Triangle’ of subsea will continue to dominate upstream hardware expenditure; West Africa, GoM (Gulf of Mexico) and Brazil, with Africa remaining the largest market.
“Growth offshore Brazil is driven directly by Petrobras’ long-term deepwater and ultra-deepwater strategy.”
The biggest spending growth will be in deepwater hardware, according to the report, especially over the next five years.
“Developments in water depths greater than 1,640 feet will account for over half of the total forecast market spend; illustrating the increasing importance of harder-to-produce reserves,” it says.
It adds: “The outlook for the subsea hardware market shows long-term growth potential. The technology deployed is unlocking reserves that would historically have been impossible to access, but at a price.
“As a result the sector has become a very sizeable opportunity for the oilfield service and equipment community.
Subsea developments continue to account for an ever-increasing share of offshore activity.”