The FPSO (Floating Production Storage Offloading) Market Update forecast report is a unique publication that is a complete, in-depth, independent forecast of all the key trends and dynamics currently characterising the Floating Production Storage Offloading facility market sector of the offshore oil and gas industry. The focus of the report is on areas of change and opportunity, and as such, the report will make crucial reading for those who make strategic plans or investment decisions surrounding the FPSO market.
The year 2009 was an acutely difficult one for the global energy industry as it was buffeted by a severe cyclical downturn and offshore, one of the hardest hit sectors was the FPSO market, which was adversely affected by concerns over a weakening oil demand and a reduction in available investment finance. These factors undermined the stable market conditions that are required to initiate FPSO projects, which are typically long-term and capital intensive in nature.
As a result there were no new FPSO contracts awarded in 2009; a stark contrast to record activity of 2004/08. However as the last quarter of 2009 showed early signs of recovery in the wider economy, so too did we witness a slight uptick of orders for units in the FPSO market. Looking forwards into 2010, Infield takes the view that the stage is now set for the FPSO market to recover, with strong long-term market fundamentals being complemented by more stable commodity price movements, and the emerging prospects of global economic recovery.
Infield anticipates much of the expected growth in the FPSO market through to 2014 will result from continued demand from deepwater Brazilian and West African plays. But in this report we also identify new dynamics in the global FPSO market; such as demand growth in Asia, the greater role of smaller independent oil companies and the increased importance of smaller offshore oil fields.
Partly as a reflection of these new dynamics, and partly because of the growing maturity of the FPSO market, we are noticing several changes in supply provision within this industry. These changes come in two forms: firstly, design based change (such as new cylindrical units that enable FPSOs to acquire additional drilling capabilities); and secondly, the ready availability of previously contracted FPSOs. With additional FPSOs scheduled to come off fields within the next five years, this report gauges the potential size of the available FPSO fleet to 2014, and analyses the potential impacts of a market which looks set to encounter a significant shift in its supply / demand dynamic. The FPSO market has risen to prominence recently as the offshore oil industry has delved into ever deeper and more remote locations. Our outlook for 2010/14 highlights that this is a market entering a mature phase. Changes in the demand dynamics that we have been observing – such as growth in regional markets other than West Africa and Brazil and growth and diversification of the market’s client base at a global level – are both indicative of this. Also important in this maturing process is the future potential for significant changes in the supply side of the FPSO market. This raises concerns over parallels between the unfolding supply situation today, and the tumultuous early 2000’s; which also saw an uncomfortable balance between FPSO supply and demand.
Understanding the trends and dynamics that we have outlined in the global FPSO market – and their potential impacts – will be crucial for all businesses and investors that seek to capitalise on a market which, despite a difficult 2009, has plenty of potential over the next four years and beyond
Purchasers will receive free access for 12 months to Floating Production Systems Online (FPSO), a database which identifies all FPSO facilities being planned or considered for development in the current year and four years forward. Access to the database includes the following information for each project:
Subscriptions can be upgraded to include the operational fleet and other facility types including TLPs, spars, semi-submersibles and fixed platforms.
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