The current low oil price environment could bring about an opportunity for standardization of subsea control umbilicals and power cables, an industry official tells Rigzone.
The current low oil price environment could create a market opportunity for the standardization of subsea control umbilicals and power cable suppliers, an industry official told Rigzone.
Although the industry has talked about standardization for years, the standardization of subsea control umbilicals and power cables has never materialized. But companies are now coming to JDR with requests to reduce costs, said Carl Pilmer, global sales director, products and services oil & gas, on the sidelines of the SPE Offshore Europe Conference in Aberdeen, Scotland.
With 72 qualified umbilical designs, JDR is telling customers it can reduce costs by using an already qualified design, rather than designing a new one, Pilmer noted. The company has seen projects delayed, but has not seen a great deal of reduction in orders, Pilmer said.
JDR services the oil and gas and renewable energy industries. The company holds 70 percent market share for oil and gas intervention workover control subsea umbilicals, which it suppliers to vendors such as FMC Technologies. JDR also supplies production umbilicals directly to large oil and gas operators, and thermoplastic hoses to the Asian market for shallow water oil and gas operations. Two years ago, the company moved into supplying steel tube umbilicals when it saw an opportunity to supply smaller companies with shorter lengths of steel umbilicals. The company also manufactures subsea power cables and hybrid umbilicals, a combination of steel and thermoplastics.
Oil and gas industry officials speaking at the SPE Offshore Europe Conference this week in Aberdeen, Scotland have called for industry to pursue ways to increase efficiency and reduce costs to cope with low oil prices, including standardization of technology and practices and new ways of thinking about business practices.
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