Offshore Oil to Peak in 2020, Then Slow Down



Offshore Oil to Peak in 2020, Then Slow Down
Offshore oil production is expected to hit a peak in 2020 before joining the shale industry in a slowdown that could dramatically rewrite market supply predictions.

Even so, the Gulf’s share of U.S. production overall is expected to shrink, the EIA report said, to about 15% from 23% in 2011. In 2014, the industry had 245 floating rigs working globally, according to Evercore ISI. Now there are less than half that number, and workers in the industry see few silver linings ahead.

“The fracking technology has just opened up so much more oil,” said Chip Keener, a former manager of the global rig fleet for Transocean Ltd., the biggest owner of deepwater rigs. “Deepwater I think is going to be on the skids for a very long time.”

To contact the reporter on this story:
David Wethe in Houston at dwethe@bloomberg.net

To contact the editors responsible for this story:
Simon Casey at scasey4@bloomberg.net
Reg Gale, Joe Carroll


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