Global Subsea Market: Entering an Age of Recovery
13 April 2017The global subsea market has undergone one of, if not the, most brutal downturn in recent history. The Upstream Supply Chain research group at Wood Mackenzie has observed that lengthy project delays caused by long-term concerns about subsea cost stemming back from the previous decade coupled with the oil price crash of 2014 have created a perfect storm of challenges for the overall offshore market.
Adapting to new conditions
The oil and gas industry has always been one of innovations driven by the challenges of maximizing recovery safely and efficiently. This downturn required the industry to closely examine how it executes subsea projects and understand how it can further increase efficiency, return and recovery.
Industry collaboration has been an ongoing theme in the industry as the supply chain comes together with unique solutions to the high cost issues in deep water. The operators are doing their part by reassessing their developments, prioritizing the highest potential and optimizing development concepts given an outlook of a lower-for-longer oil price. The operators and supply chain have come together to work on these projects earlier in the life cycle than had historically taken place in the hopes that the earlier the two parties work together on a project, the better the chances are at maximizing potential efficiencies and "red flagging” potential costly pitfalls.
more [source: E&P Mag]