According to the report from energy business analysts Douglas-Westwood Ltd, worldwide expenditure within the deepwater sector will total US$ 167 billion between 2010 and 2014 鶹ýӳ equating to a 37% increase on the five preceding years.
鶹ýӳThe World Deepwater Market Report 2010 鶹ýӳ 2014鶹ýӳ reveals that sector activity will largely remain within the 鶹ýӳgolden triangle鶹ýӳ of Africa, the Gulf of Mexico and Brazil 鶹ýӳ with regional investment representing over three-quarters of the predicted global Capex expenditure. The majority of 鶹ýӳgolden triangle鶹ýӳ investment, however, will take place in Latin America 鶹ýӳ driven largely by Capex-intensive development plans laid out by Petrobras over the next decade. The report also highlights that Asian deepwater markets will continue to grow during the forecast period 鶹ýӳ receiving around 10% of the total predicted global Capex investment.
Steve Robertson, Director at Douglas-Westwood, explains: 鶹ýӳThe lack of new opportunities onshore or in shallow waters, together with the need to offset decline from existing reservoirs, is driving deepwater investment at a much higher rate than in previous years. In addition, technological advances have improved the economic viability of developments much further offshore.鶹ýӳ
鶹ýӳThe World Deepwater Market Report 2010 - 2014鶹ýӳ also reveals that operators have exerted substantial pressure on their supply chains during 2009 鶹ýӳ achieving reductions of up to 15%. This confirms operator purchasing power has returned but that renewed sector growth could encourage cost inflation in some equipment and service markets. 鶹ýӳWe, therefore, expect the operator community to exert even more influence over the next five years to prevent a repeat of the unchecked inflation experienced between 2003 and 2008,鶹ýӳ concludes Thom Payne, Lead Analyst at Douglas-Westwood.
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