Page 8: of Offshore Engineer Magazine (May/Jun 2025)

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MARKETS OSVs

Te SEA

Ofshore Market:

Today’s Reality,

Tomorrow’s Outlook © corlaffra / Adobe Stock

Oil price weakness remains a key concern for most stakeholders in the industry.

With prices hovering in the low to high 60s these days, this refects a decline of more than 20% compared to a year ago. Tis recent dip in oil prices stems from several months of unwinding OPEC production adjustments, compounded by turbulent geopolitical developments. Together, these forces have stirred uncertainty across the market, casting a fog over the outlook and hinting at deeper, potentially structural, shifs taking shape beneath the surface.

By Michelle Yeo, Market Analyst, Fearnley Offshore Supply AS n light of these developments, Rystad Energy have activity, many of the oil majors have reiterated their com- revised their May global greenfeld commitment mitment to maintaining overall production targets.

outlook to $85 billion this year, representing a 35% Global macroeconomic headwinds place us at a critical decrease compared to their outlook just a month infection point, setting the stage for a new paradigm as

I ago. Several oil majors have also adjusted their spending stakeholders recalibrate market positioning and plan for forecast for this year, with ENI announcing a reduction the coming decade. The depth and duration of the current of 6% in gross CAPEX expenditure while ConocoPhillips muted price environment remain uncertain, but the over- quoting a reduction of 5%. Other key oil producers have all long-term outlook remains promising. Regional com- also reported cuts between 2% and 10%. While it remains mitments point to continued momentum through 2029, unclear whether these cuts will translate into lower E&P with average E&P vessel spending projected to grow by 8 OFFSHORE ENGINEER OEDIGITAL.COM