Marine Industries Global Market Analysis - Marine Institute

98 MARINE INDUSTRIES GLOBAL MARKET ANALYSIS
Figure 17.5: Deepwater Oil & Gas Production
17.7 DEEPWATER
The growth of deepwater activity (>500m) is one of the most significant trends of
recent years with the most important areas being Angola, Brazil, Nigeria and the
US Gulf of Mexico – where it now accounts for 60% of total production. In 2004
deepwater oil production, about 2.6 million b/d, comprised 10% of global offshore
production and deepwater gas production of around 7%.
We expect deepwater production to grow from a present oil & gas equivalent of
3.4 million b/d, to 8 million b/d by 2008 and continue its growth beyond 2012.
17.8 FLOATING PRODUCTION
The development of deepwater fields has resulted in a strong growth in the use
of floating production systems.The most common form is the FPSO, (floating
production, storage and offloading system).
Source: The World Offshore Oil & Gas Report
FPSOs are usually tanker conversions, with 137 deployed to end 2003. Other types
include semi-submersibles (FPSS) and more custom structures such as spars and
tension leg platforms (TLP).
We forecast a continued growth in the use of all types of floating production.
Although floaters are used in all water depths, most of this growth will be associated
with deep waters.
17.9 TECHNOLOGICAL CHALLENGES
There are many technological challenges facing the offshore industry. In common
with other sectors, a key theme is that of reducing costs. Particular targets are the
main expenditure sectors of drilling, production facilities and pipelines.
Deepwater operations – the record for deepwater production is currently some
2,316m but exploration is happening in greater than 3,000m water depth. Such great
depths represent major challenges. Operations in deep water considerably increases
the time and therefore costs associated with drilling (a shallow water well can cost
$5 million – a deepwater one 4 to 20 times this).
Installing heavy seabed hardware therefore becomes a challenge as the weight of
lowering cable rapidly exceeds the weight of the hardware multiplying the winch
capacity required.