BAKU, Azerbaijan, March 27. Global offshore oil and gas sector is forecast for its highest growth over the next two years - up to $214 billion of investments in new projects, Trend reports via Rystad Energy, independent energy research and business intelligence company from Norway.
According to the research, annual capital expenditure on new projects (capex) surpassed the $100 billion threshold in 2022 and will again surpass it in 2023 - the first break in two consecutive years since 2012 and 2013.
"Offshore activity is expected to account for 68 percent of all sanctioned conventional hydrocarbons in 2023 and 2024, up from 40 percent between 2015-2018. Comparisons against this period are prudent as it predates the COVID-19 pandemic and related oil price crash. In terms of total project count, offshore developments will make up almost half of all sanctioned projects in the next two years, up from just 29 percent from 2015-2018," the agency said.
As the report pointed out, the new investments will hugely benefit the offshore services market, with supply chain spending to grow by 16 percent in 2023 and 2024 , which is a decade-high year-on-year increase of $21 billion.
The Middle East is expected to be the main driver for offshore oil and gas sector growth, Rystad Energy noted.
"For the first time, offshore upstream spending in the region will surpass all others, lifted by mammoth projects in Saudi Arabia, Qatar and the UAE. The area’s offshore spending growth looks set to continue at least for the next three years, growing from $33 billion this year to $41 billion in 2025. These countries are tapping into their vast offshore resources to meet rising global oil demand, backed by the necessary capital and infrastructure to outpace other producers," the company said.
At the same time, South America, the UK and Brazil will not lag behind as well, the agency added.
"Investments in the North Sea from the UK and Norway will rise in the next two years. UK offshore spending is set to jump 30 percent this year to $7 billion, while Norwegian investments will hit $21.4 billion, an increase of 22 percent over 2022. Brazilian upstream spending is projected to approach $23 billion this year, with Guyana investments totaling $7 billion. In North America, spending on offshore in the US will top $17.5 billion and $7.3 billion in Mexico," Rystad Energy said.