Report finds offshore recovery still held back by oil price

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(Offshore) Westwood Energy’s updated World Oilfield Equipment Market Forecast projects higher offshore expenditure between now and 2021.

The analyst now predicts total investments of $254 billion compared with $224 billion in its previous forecast.

It cautions, however, that the market will remain challenged by an oversupply of mobile offshore drilling units and the low level of project sanctioning, although various high-profile projects have gone forward this year.

There has been an increase in fixed platform orders, the analyst points out, particularly in the Middle East, and it expects aftermarket spend across the offshore market to remain healthy, with replacement, servicing, and re-certification demand continuing to sustain expenditure, notably for items such as BOPs.

However, if the Brent crude price continues to hover around $45/bbl, no significant improvements are likely for the market.