jws01us posted on 3/9/2010
'The Future of the Offshore Drilling Industry to 2015-Market Analysis, Capital Expenditure, and Competitive Landscape' report forecasts an annual average growth of 6.6% for global drilling expenditure between 2009 and 2015. GBI Research, the firm that released the report on 9 March 2010, cites the depletion of reserves in onshore and shallow waters and the advancements in seismic and drilling technologies as a key factor for the increased investment in the sector.
Advances in technology and recent increases in commodity prices have lead to increased exploration in the offshore areas of South and Central America. According to the report, Central and South America, led by Brazil, is forecasted to be one of the top regions for offshore drilling expenditure by 2015. New discoveries such as the Petrobras-operated Tupi field and the ExxonMobil-operated Azulao field have demonstrated the presence of vast reserves of crude oil in the offshore regions of Brazil and are expected to attract a greater share of the future offshore drilling expenditure. Other countries, such as Venezuela, Peru, and Trinidad and Tobago, are also witnessing offshore activity, although to a smaller extent than in Brazil. South and Central America is estimated to attract close to $100 billion in the period from 2009 to 2015, with $80 billion of that coming from Brazil.
Onshore and shallow water activity is forecasted to decline. As onshore and shallow water resources diminish and technology advances, companies will continue to invest in more and more deep and ultra-deepwater offshore drilling projects, the report said. Huge reserves contained in subsalt and presalt layers, once thought to be unattainable, are being recovered and giving companies incentive to search deeper for the next big find. As shallow water resources decrease, deep and ultra deep subsalt areas will play an increasing role in offshore oil and gas production.
by: Trevor Demara,
tdemara@oilonline.com