| Add RSS Feed

Offshore spending to continue increasing

Offshore

Offshore staff

CANTERBURY, UK -- Offshore industry spending is expected to rise to $840 billion in capital expenditures and $715 billion for operations, over the five year period to 2012, compared to the $550 billion and $390 billion estimated to have been spent in the previous five years, according to the World Offshore Oil & Gas Production and Spend Forecast 2008-2012 by Douglas-Westwood and EnergyFiles.

Offshore production output is expected to reach 30 MMbbl/d in 2008 with gas production having risen to 988 Bcm/y; rises of 22% and 55% respectively since 2000. The report details prospects for offshore oil and gas production by region and type of activity.

Report author Dr. Michael Smith of Energyfiles says the industry will have to spend in every part of the world to attain such growth. Higher energy prices and the need to exploit much more expensive environments also are driving spending.

"Where a decade ago, fixed platform developments in the North Sea, the shallow waters of the Gulf of Mexico and the relatively benign environments of the South China Sea attracted much of the spending, now billions are directed at expensive deep water and deep reservoir environments - usually using complex subsea solutions, remote gas developments and subsea wells that scavenge for satellite accumulations in the traditional areas," Smith says.