The Global Subsea Market

Looking for headache cure

There’s always tidying up to do. After the mother and father of all bender parties, in the morning someone must tidy up. What looks great when the glasses were clinking, looks very different in the hard light of a new day when the house is trashed. Especially when someone must find an emergency glazier and figure out who the guy asleep in the garden-hedge is.

The subsea market still has the thumping headache of a biblical proportioned hangover. That has immediate consequences, more than just trying to find the Alka-Seltzer. The drivers of the next market swing are already set. The recovery will take a long time though. There’s no easy switch that can be flicked that fixes this industry. Putting on your favourite music will not just get everyone dancing.

It’s always darkest before dawn. The subsea market is easy to apply clichés to, but then the immediate issues of the industry are clichés in themselves.

An oil price spike is inevitable. The question is when. That will mean subsea market demand does turn, but demand alone will not be enough to turn the industry’s frown upside down. Oversupply runs so deep and is so overbearing, that a demand hike won’t be enough, something must happen on the supply side too. More demand would help, and the signs of green shoots maybe germinating are there.

For contractors and vessel owners, survival is the immediate focus. Money is paramount. Money to keep going. And accounting for all the money already spent on assets that are now worth much less than expected. Get ready for that to mean all sorts of changes are forced on the market.

Even if the market hasn’t quite bottomed-out, confidence and attitude can still change. All that takes is a few big projects out to bid, and oil companies starting to move back into a mode where spending is committed to. In the meantime, utilisation is at historically low levels, and things couldn’t look much more glum and grim. Yet, oil companies will have to replace falling production and shrinking reserves. Come time, spending will kick into gear again.

Strategic Offshore Research’s definitive annual Global Subsea Market to 2021 report tells you what you really need to know about the market. All the needless noise and wailing of the industry is stripped away for straight to the point answers. The report gives you the brass-tacks of where the market is, and is going. With the market tougher than ever before, being aware of what the issues and risks are has never been more vital.

For further details contact Jo Slade at jo@strategicoffshore.com or telephone +44 1224 498020.

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