• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 3 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 12 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days Energy Armageddon
  • 6 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 3 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 6 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 6 days The Federal Reserve and Money...Aspects which are not widely known
  • 6 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 11 hours Wind droughts
  • 7 days Goldman Betting on Cryptocurrencies
  • 10 days Сryptocurrency predictions
Volkswagen Sales In China Stall In 2022

Volkswagen Sales In China Stall In 2022

Volkswagen announced this week that…

Next Week Will Be Critical For Oil Markets

Next Week Will Be Critical For Oil Markets

The next few days will…

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

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News