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Global Forecasts 2013 that globally, one of the problems forecasts that 63% of the money Data Integrity for oil demand is all of the spent worldwide on FPSs will be in

OE talked to Steve Knowles, president and competition from natural gas. ‘It deepwater.

CEO of Wood Group Mustang, asking ‘what competes by displacing residual FPSOs are by far the largest will be the most important things in the fuel for electricity generation and, segment of the market, with coming years?’ in quite a few places, it displaces 94 installations to be added and

Knowles: I think that, although it’s not distillate as well. Both the Chinese capex commanding 80% of all the expected subsea technology of and Indians initially built their FPS expenditures 2013-17. FPS big projects, rather, it’s data integrity electricity-generating capacity on semisubmersibles account for the associated with the projects. We need oil. What they’ll do now is convert second-largest segment (10%), to focus on ‘What is the ease of being to gas.’ followed by tension-leg platforms able to input changes to facilities?’ ‘What When asked for a price forecast, (TLPs), then spars.

is the ease of being able to retrieve

Littell hinted that OPEC held a lot Latin America will have 29% of that information and what is the ease of the supply cards, noting that the forecast installations and 37% of updating it?’ ‘How can we get our ‘Saudi Arabia is putting out of the projected capex. Petrobras- information delivered in a digestible 10 million b/d, which is at the top operated felds off Brazil have seen manner?’ of their normal 8-10 million b/d the most installations to date and We see a major trend toward assurance. range. There’s plenty of room this is likely to continue, albeit

And, the regulatory bodies [are] moving for them to cut back production. substantial delays are expected for in that direction, as well as the operators,

There’s no reason for oil prices to Petrobras’ offshore E&P investment. including the engineering and design frms. go down a lot, but it’s not a smooth Asia is the next-most active region,

That brings more robust quality systems, process. I’d expect them to range in with 24 units to be added, while more emphasis around competencies. 2013 about the same as they did in Africa should attract a forecast

Having the right people with the right 2012.’ $18.2 billion in capex.

backgrounds, doing the work that you’ve given them to do. And then, checking that Mobile drilling rigs are expected

Global Offshore to increase by 286 units during [work]. It’s fnding a balance between

Underscoring the importance of the the next fve years as demand for getting the assurance right and getting sector, offshore E&P now accounts offshore drilling increases.

these facilities completed in an economic for over 30% of global production. Remarking that any forecast and timely basis.

Its vast investments now include could go awry, Westwood notes I see a lot of trends in the direction of 11,698 vessels – 13% of the global that the fracturing and horizontal looking at the appropriate safety cases, feet, notes John Westwood. well technologies sweeping the US looking at the competency of our folks, and Douglas-Westwood fnds that could spread worldwide and impact ensuring that we have the tool systems and capital expenditures in deepwater the development of expensive procedures that will drive integrity. We’ve projects are forecast at $232 billion, environments such as arctic oil and all known for many years that safety was with the US, Brazil and West Africa gas.

our business but we’ve been getting better accounting for 72% of that. Subsea Westwood points out other risks: and better at implementing that. And then, technology will garner $135 billion ‘. . . industry costs have doubled we’re seeing the metrics of that [process] for hardware installed over the next since 2000 – skill shortages and start to improve. fve years, which means a 33% spiralling cost infation will I know these things are less fascinating increase in subsea support-vessel continue to be an issue, as well than say, subsea separation, subsea pumping and underwater facilities, FLNG days at a cost exceeding $77 billion, as industry over-reaction to and so on, but underneath those things are with deepwater operations being market cycles causing oversupply, these core competencies that we’ve got the biggest driver. something partially associated with to continue to address and see that those Floating production systems (FPS) vessel owners.’ move along with it.

are well established as a Westwood’s fnal caveat is one of cost-effective method for producing optimism: ‘The offshore business is

OE : But those technologies are still oil and gas. Douglas-Westwood busier than it has ever been; many important to frms such as yours?

forecasts that between 2013-17, offshore technology companies

Knowles: Yes, defnitely. Brazil, for $91 billion will be spent on FPSs report record backlogs and/or orders example, continues to be on the cutting – which is double the preceding so the industry needs to consider edge of HPHT. They’re using 20,000psi fve-year period. Reasons include supply-side constraints and plan systems now. That will unlock those HPHT a larger proportion of newbuilds accordingly.’ discoveries.

and conversions, a greater degree of For the foreseeable future, clearly, In terms of big themes, we’re seeing a local content (resulting in increased the offshore environment, led by trend-line toward mega-projects: costs) and general offshore industry deepwater, is the place to be for mega-FLNG, mega-FPSOs, and more cost infation. Douglas-Westwood growth.

behind that if you look at stranded gas.

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