Page 27: of Maritime Reporter Magazine (May 2023)

OIL & GAS ffshore oil and gas production probably driven energy security to the very top of the agenda in many matters now more than ever,” declared countries. The war in Europe is causing a cost of living crisis

Audun Martinsen. The Rystad Energy in many countries, and widespread food shortages in others. “O Partner and Head of Energy Research Rystad’s analysis reveals that the Middle East is a hotspot told Maritime Reporter & Engineering News. for spending (see chart). Offshore capex across the region will “It is one of the lower carbon-intensive methods of extract- exceed all others, driven by huge projects in Saudi Arabia, ing hydrocarbons and there is signi? cant scope to decarbon- Qatar, and the United Arab Emirates, according to Rystad ize the production process further. Offshore operators should analysis. But strong growth is evident elsewhere , too. expect a windfall in the coming years as global superpowers South America, notably Brazil, is second, followed closely try to reduce their carbon footprint while advancing the en- by Western Europe, speci? cally the North Sea. North America ergy transition.” comes next, with more than $17 billion of capital investment

Martinsen was commenting after the Oslo-based ? rm re- expected this year. vealed that offshore oil and gas investment is lined up to hit

WHAT’S THE PROBLEM?

$214 billion in the two years ending December 2023, the ? rst time it has reached this 24-month level since 2012-13. And There is clearly a public perception problem, not helped offshore activity is expected to account for 68% of all sanc- by the super-pro? ts clawed in by the world’s largest energy tioned conventional hydrocarbons this year and next, up from majors over the last two years. Electric cars may help by a pre-pandemic average of around 40%. replacing gas guzzlers to some extent, but global lithium

There are many factors at work, but post-Covid recovery, supplies could not sustain a long-term switch without new

China’s re-opening, and Russia’s invasion of Ukraine have technologies. www.marinelink.com 27

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