. Offshore activity is expected to account for 68% of all sanctioned conventional hydrocarbons in 2023 and 2024, up from 40% between 2015-2018. Comparisons against this period are prudent as it predates the Covid-19 pandemic and related oil price crash. 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 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 $21 billion. Offshore rigs, vessels, subsea and floating production storage and offloading activity are all set to flourish. One of the leading global drivers is the sizable expansion of offshore activities in the Middle East. For the first time, offshore upstream spending in the region will surpass all others, lifted by mammoth projects in Saudi Arabia, Qatar and the UAE. The area’s offshore spending growth looks set to continue at least for the next three years, growing from $33 billion this year to $41 billion in 2025.
Although the Middle East is leading the way, South America, the UK and Brazil are just slightly behind. Investments in the North Sea from the UK and Norway will rise in the next two years. UK offshore spending is set to jump 30% this year to $7 billion, while Norwegian investments will hit $21.4 billion, an increase of 22% over 2022. Brazilian upstream spending is projected to approach $23 billion this year, with Guyana investments totaling $7 billion.
Brazil state giant Petrobras plans to deploy 16 FPSOs across six fields before the end of this decade, while growth in the Guyanese Stabroek Block will also contribute to regional expansion. In long-term forecasts, Middle Eastern growth is set to continue, if not accelerate, while South American spending will slow in 2025.
BP, Aker BP & Eni🔥
Surely the United States' lack of participation is news worthy and interesting. Yet not a mention of the US in the article. Why not?