• 6 hours Thanksgiving Gas Prices At 3-Year High
  • 10 hours Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 12 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 15 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 16 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 17 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 19 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 4 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 4 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 4 days Venezuela Officially In Default
  • 4 days Iran Prepares To Export LNG To Boost Trade Relations
  • 4 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 5 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 5 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 5 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 5 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 6 days Russian Hackers Target British Energy Industry
  • 6 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 6 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 6 days Lower Oil Prices Benefit European Refiners
  • 6 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 7 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 7 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 7 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 7 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 7 days OPEC To Recruit New Members To Fight Market Imbalance
  • 7 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 8 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 8 days Saudi Aramco To Invest $300 Billion In Upstream Projects

Breaking News:

Thanksgiving Gas Prices At 3-Year High

Oil Prices Nosedive On Bearish IEA Report

Oil Prices Nosedive On Bearish IEA Report

Oil prices are cratering after…

Global Energy Advisory November 17, 2017

Global Energy Advisory November 17, 2017

The IEA’s World Energy Outlook…

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

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