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LNG carrier to an FLNG, an FSRU was ordered and a modi? ed LNG tanker has been leased for storage use.

“Looking forward, we are tracking 30 projects considered likely to generate contracts for ? oating production units over the next 18 months,” said McCaul.”

Among the likely awards are 18 FPSOs, two production semis, ? ve LNG liquefac- tion or regasi? cation units and ? ve FSOs. “We continue to view the downturn as a bump in the road,” said McCaul. “Oil supply got a bit ahead of demand, oil to prop up global oil pricing by reducing prices collapsed – abetted by ? nancial production, its strategy created a big de- market speculation – and the industry mand in the tanker sector, improving rap- pulled back on investments. Orders for idly in the second half of 2014 and con- new systems suddenly slowed. This has tinuing through the beginning of 2015. happened before, and will recur again.”

According to the Platou Report 2015,

A major differentiator in this energy cheaper oil meant longer trading dis- storm is the simultaneous implosion of tances, as the U.S. shale revolution pres-

Petrobras, creating in McCaul’s words a sured more cargos toward Asia. In step “perfect storm through the ? oating pro- with this increased demand, tanker ? eet duction sector. The storm appears to be growth was largely stagnant and overall an event of the past.” utilization ? ew north of the 85% mark.

“The most likely scenario is for oil prices to hover in the $70s over the next

Going Deep with Floaters few years – with spikes above and below.

Despite industry gloom about the This price level will support many deep- offshore market, orders for production water project starts, particularly as devel- ? oaters continue to ? ow, according to opment costs fall as a result of surplus

Jim McCaul, IMA/World Energy Re- supply capacity,” McCaul concluded.

ports and a noted, long-time expert in the A detailed review of the future market

Floating Production ? eld. When speak- and forecast of production ? oater orders ing McCaul at press time, he said that is in the March IMA/World Energy Re- over the past few weeks a speculative- port, including a forecast of ? oater or- ly-ordered FLNG found use off Africa, ders through 2019. For full details visit: negotiations began to convert a third www.worldenergyreports.com.

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