A recent report from Douglas-Westwood Ltd. forecasts deepwater expenditures to total $137 billion during 2016-20, which represents a 35% decline from its previous forecast covering 2015-19.
“The prolonged low oil price has impacted the deepwater market, with operators considering alternative development options and delaying the sanctioning of new projects,” said Mark Adeosum, report author at Douglas-Westwood.
At this time last year, 210 projects were slated for installation within the subsequent 5 years. Douglas-Westwood now projects 118 projects for installation through 2020.
The report attributes expenditures predominantly driven by Africa and the Americas, which will account for a combined 87% of total deepwater investments.