• 35 mins Enbridge Pipeline Expansion Finally Approved
  • 2 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 hours OPEC Oil Deal Compliance Falls To 86%
  • 18 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 20 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 22 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 24 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 1 day Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 1 day Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 8 days Brazilian Conglomerate To Expand Into Renewables
Canada’s Pipeline Industry Takes Another Hit

Canada’s Pipeline Industry Takes Another Hit

Canada’s struggling oil industry has…

This OPEC Strategy Could Boost Uranium Prices Next Year

This OPEC Strategy Could Boost Uranium Prices Next Year

Kazakhstan, the world’s largest uranium…

Investment in Subsea Oil Operations Expected to be $13.9 Billion this Year

Oil producers are working in ever more challenging environments as they continue to develop newer fields. Deepwater operations are becoming more common, with some oil being extracted in as a much as two miles of water.

This is producing a number of technical challenges related to the drilling, safety, maintenance, and extraction of the oil to the surface, and this all increases the operating cost of the rigs in such fields.

One solution that is growing in popularity is to relocate as many of the surface activities as possible to the seabed, this reduces the maintenance required and the down-time from weather disruptions, which according to Martin Craighead, chief executive officer at Baker Hughes Inc., can cost companies billions of dollars. Being able to improve oil recovery efficient by just one percent can translate into an extra $3.2 billion for some projects.

Purchases of subsea valves, pipelines, and cables needed to develop underwater extraction and processing plants are estimated to reach $13.9 billion this year, up 66% from last year.

Related article: Lebanon’s Oil Industry Heading into Troubled Waters

Equipment makers specialising in subsea paraphernalia that can withstand the huge pressures and freezing temperatures experienced at extreme depths, such as FMC Technologies Inc. and Cameron International Corp., are the most likely to gain from the large increase in investment expected in the sector.

James Crandell, an analyst at Cowen Securities, said that, “a powerful wave of orders has begun to affect subsea equipment providers that in our opinion will last for at least the next five years and probably more. We believe no one will benefit more from this wave than FMC Technologies.”

The ultimate aim for oil companies is to move all current surface activities down to the sea bed, including well flow controls, basic processing, and the transportation of oil and gas to onshore markets.

David Eyton, head of technology at BP, explained that there “is a balance to be struck here between the capital savings that you can achieve, in theory, from putting more and more of it on the seabed, and operating costs and reliability and safety of what you’ve created.”

For more detailed reports on the investment opportunities within the Subsea Sector please visit the following links:

Deeper & Smarter: The Subsea Oil & Gas Growth Outlook

Subsea Processing: Cutting out the Expensive ‘Middle Man’

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News