Australian oil and gas industry experts are exploring the market and possibilities for future subsea exploration and drilling to meet the energy needs of Australia and other world markets. As a result, Australia is enjoying a key spot in the global investment destinations list.
The predicted growth of the subsea sector in the Australian region will make it an emerging arena in the search for world oil and gas supplies. The future success and sustainability of this industry will depend on several global and technological factors including innovation, ever improving vessels and systems of operation. Government regulations will need to be adhered to and safety concerns addressed. Financing and supply chain factors also need to be studied and solutions found. Yet with the right conditions and management, the subsea market share could increase by as much as 14%
over the next few years. This undoubtedly suggests that in the current market conditions, it is considered well worth the effort to meet all the challenges presented and move forward with this expanding oil and gas sector.
Rystad Energy, Norway’s prominent oil and gas market analysis and strategy consulting companies recently stated “The international subsea market is about to see immense growth.” Rystad divided the market into three sectors:
1. The SURF market covers drilling site installation, risers, flowlines and umbilicals. This sector is expected to increase from approximately $15 billion to over $30 billion annually.
2. Development and production of subsea drilling and other equipment like transport vessels. This section of the market will increase from about $10 billion a year to the $20 billion range.
3. The new market for inspection and maintenance of all equipment. Rystad predicts this share of the market to double by 2018.
Rystad is predicting that subsea oil and gas production will claim an increasing market share in the next decade. Now 70% of all oil comes from onshore, just under 30% offshore and 9% is produced subsea. By 2020, Rystad predicts that at least 15% of oil production will be subsea. They also predict that by 2030, subsea production could be close to the traditional oil and gas production offshore.
Market expert report “World Subsea Vessel Operations Market Forecast” and
renowned international energy analyst Douglas-Westwood agree that the Australian subsea oil and gas industries are enjoying a considerable rate of growth. Australia and the surrounding area are considered forerunners in the global oil and gas investment destinations. At present, Norway has the largest subsea oil and gas production, with the UK close behind. In the near future (2015-2020), other countries like Australia and Western Africa will increase subsea production to surpass that of Norway and the UK. Brazil and the gulf of Mexico will also be major players in the subsea sector over the next decade.
The Australian Oil and Gas Exhibition and conference for 2015 will feature the subsea sector as one of its main topics of discussion.
For more details on the Conference, visit www.appeaconference.com.au.