Offshore spends and trends 2009

Scottish Enterprise has published a new series of the popular Spends and Trends reports.  

Assessing the prospects for the offshore oil and gas industry in eight regions of the world, the reports are intended to provide valuable market research for oil and gas service and supply companies based in Scotland, and help identify opportunities in international markets.   

Previous Spends and Trends editions have proved to be very useful, particularly for small and medium-sized businesses with limited market research capabilities.  

There are eight reports looking at activity in the following regions: 

• Norway
• US Gulf of Mexico
• Middle East
• Mediterranean
• West Africa
• South America
• Asia-Pacific
• Caspian Sea 

The reports cover the key regions of the global industry with the exception of the UK Continental Shelf (UKCS), which was the subject of a separate report in 2007.  

Offshore expenditure and regional oil and gas production forecasts for the period 2009 -13 are set out alongside the 2004-08 figures, with total expenditure components comprising capex, opex, exploration and decommissioning spend, while exploration and appraisal prospects are also identified.

Overall, total offshore expenditure shows a steady rise from $123 billion in 2004 to $148 billion in 2008, with forecasts continuing to increase to $161 billion in 2013.  The cumulative 2009-13 forecast total of $784 billion is +16% higher than the 2004-08 total. 

Total offshore oil production forecasts show a 23% increase from 1,061 million tonnes (21 million barrels per day) in 2008 to 1,302 million tonnes (27 million bpd) in 2013.  Offshore gas production is forecast to increase by a massive +47% from 704 billion cubic metres (bcm) in 2008 to 1,003 bcm in 2013. 

As all the forecasts are in constant 2007 values, they show real changes, taking account of inflation.

The pattern of offshore expenditure is expected to see significant geographical changes with spending in the more mature areas such as the US Gulf of Mexico predicted to decline, while in West Africa, the Mediterranean and the Caspian Sea offshore expenditure is forecast to increase rapidly.

With more and more exploration taking place offshore and in increasingly deeper waters, a large number of offshore fields are currently being developed in areas such as West Africa and Asia-Pacific. 

Brian Nixon, director in Scottish Enterprise’s energy team said: “The Spends and Trends reports are a really good source of information for companies thinking of entering new markets or equally seeking to capitalise on opportunities in markets where they may already do business.   

“They are always well received,” Mr Nixon continued. “Generally we send the reports out to companies we work with or those anticipating their publication but there are also companies that may not be aware of this extremely useful market intelligence so we want to generate greater awareness and encourage people to make use of them.  We hope this information will go some way to helping companies make their next step and ultimately their mark in the international marketplace."