As offshore oil and gas development wanes, project awards for subsea trees plummet.
Cowen & Co. predicts awards will fall to 113 subsea trees this year from 153 last year, 232 in 2014, and 551 in 2013, the top of the latest cycle.
The investment firm expects the tally to rise to 175 subsea trees in 2017 but warns, “Low commodity prices may result in further project deferrals or cancellations.”
Of the total projected for 2016, 56 awards will be for large projects—those involving five or more trees.
Large 2016 projects, with operator, location, and number of trees, are Vito, Shell, Gulf of Mexico, 15; Equus, Hess, Australia, 18; Coral South FLNG (Area 4), Eni, Mozambique, 6; Zohr Phase 1, Eni, Egypt, 5; and Hebron, ExxonMobil, Canada, 12.