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The World Offshore Oil and Gas Forecast is a Unique, Wide-Ranging and Comprehensive Study of the Long Term Future for the Global Offshore Oil and Gas Industry

Posted on: Friday, 18 April 2008, 09:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c89312) has announced the addition of "World Offshore Oil and Gas Production and Spend Forecast" to their offering.

This new study presents a detailed analysis of production capacity for every existing and potential offshore producing area in the world for each year through to 2011.

Daily offshore oil & gas production, currently standing at around 43 million barrels of oil equivalent (boe), is forecast to grow to 53 million boe in 2010 and drive industry annual expenditure from $193 billion in 2006 to $248 billion by 2010, according to the "The World Offshore Oil and Gas Production & Spend Forecast", a fully revised and expanded study on the prospects for the offshore oil & gas industry.

Our managing director said "High oil & gas prices over the period to 2010 will result in continued strong growth in the offshore oil & gas sector. Over the next five years we expect annual capital expenditure to increase by 10% from just under $110 billion in 2006 to $120 bn, but the real star of the show will be the less glamorous operational sector with a forecast growth of 53%, from $83 billion to $127 billion."

Report author Dr Michael R. Smith noted "offshore spends are increasing rapidly but there are considerable differences across the regions. The main causes for the disparities are an increasing shortage of lower cost prospects in all but the Persian Gulf and the limited availability of deep water sedimentary areas with potential for oil and gas reserves outside those already identified in Brazil, the Gulf of Mexico, West Africa and some other less prominent regions. Nevertheless all markets will retain ever-higher levels of operating expenditure. Overall, we expect West Africa to show the greatest growth at nearly $13 billion."

The report stresses that new activity in the mature offshore regions will increasingly become dominated by existing and new start-up small oil companies (along with the relevant National Oil Companies) as producing and exploration assets are acquired by smaller companies that specialise in marginal field developments and in scavenging for tail-end production.

A particular concern is that over the next three years most sectors of the offshore industry will be equipment and people resource-constrained. "Day rates will remain high, especially for capital assets such as high specification drilling rigs and other vessels. The experienced personnel needed to design, build, and operate drilling and production equipment will also command a growing premium".

However, it is noted that "new rigs have already begun to enter the market and are now serving to moderate day rate growth. These restraints are reinforced by limits on opportunities in offshore regions available to private oil & gas companies."

"The offshore market forces directing the industry towards new cost-cutting technology and other commercial innovations are strengthening. In this sphere the greatest challenges faced by technology developers remain problems related to the conversion of new products into proven hardware, in particular the reticence by oil companies to introducing unproven equipment into a high technology project. New low-risk ways of product introduction are needed for both technology developers and oil companies to field-prove new technology."

In the light of growing offshore expenditure another challenge that both the oil companies and their contractors is facing is that of accessing human resources. "The 'skills shortage' may in time be addressed as new people enter the industry attracted by higher salaries. But the 'experience shortage' is far more challenging and there exists a growing potential for both technical and strategic mistakes to be made by inexperienced personnel acting in an environment of rapid technology advances" said our Managing Director.

Contents:

1 SUMMARY AND CONCLUSIONS

2 THE OFFSHORE OIL & GAS INDUSTRY

3 REGIONAL PRODUCTION REVIEW: THE AMERICAS

4 REGIONAL PRODUCTION REVIEW: EUROPE & THE FSU

5 REGIONAL PRODUCTION REVIEW: AFRICA & MIDDLE EAST

6 REGIONAL PRODUCTION REVIEW: ASIA PACIFIC

7 REGIONAL PRODUCTION REVIEW: GLOBAL SUMMARY

8 PRODUCTION SPEND BY SECTOR AND TYPE

9 REGIONAL SPENDING REVIEW

10 APPENDIX

For more information visit http://www.researchandmarkets.com/reports/c89312

Source: Business Wire

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