Energy Demand to Underpin Long Term Growth in Offshore E&P Expenditure
Rising energy demand will underpin long-term growth in the industry’s expenditure for the global offshore oil and gas sector, John Westwood, Group chairman of consultancy and information services company Douglas-Westwood told participants at the OSEA Conference held in Singapore in early December.
The firm projected that the industry would spend around $1.4 trillion on offshore exploration and production (E&P) between 2014 and 2018 in order to meet global oil and gas demand. The forecast was made before the Organization of Petroleum Exporting Countries (OPEC) decided at its recent Vienna meeting to maintain production at 30 million barrels per day despite falling crude oil prices.
It remained “too early to say how much [of the expenditure] may be postponed in 2015 … The big projects offshore are likely to continue pretty much untouched,” Westwood said.
Some market players have urged the industry to seize opportunities provided by lower oil prices, which have fallen from a high of around $110 a barrel earlier this year to around $64 a barrel Dec. 10, to create a more stable business model, less vulnerable to oil price cycles.
Lower “oil price is not something to be panicked about … this is a wake-up call for our industry to really move forward,” Matthias Bichsel, a former director of projects and technology at Royal Dutch Shell plc, told the Eighth International Petroleum Technology Conference (IPTC) in Kuala Lumpur, Malaysia.
Industry Needs to Meet Energy Demand Growth
Irrespective of oil price, the International Energy Agency (IEA) projects that worldwide energy demand will grow by 37 percent to 2040, or at an annual average growth of 1.1 percent, according to the Paris-based organization’s World Energy Outlook 2014 (WEO2014) released in November.
“Demand for oil rises by 14 million barrels per day, to reach 104 million barrels per day in 2040 … global gas use continues to grow, with demand of 190.62 trillion cubic feet [5.4 trillion cubic meter],” according to WEO2104.
12345
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Malaysia's InvestKL Woos Top Oil, Gas MNCs to Base in Kuala Lumpur
- Petrobangla Invites EOIs for 3 Offshore Exploration Blocks in Bay of Bengal
- Malaysia's SapuraKencana Posts 7.1% Gain in 2Q FY17 PAT to $27M
- TH Heavy Engineering, McDermott End Partnership in Malaysia
- Singapore's NUS Slowly Builds its Petroleum Engineering Program
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension