The Global Subsea market forecast
Revenge of the monster from the deep
Things are different in the subsea market. Really different. A soaring upswing is flying under the radar and is really taking hold. Revenge is a dish best served cold, and the subsea market has been stone cold. Now that subsea is turning red hot, the retribution is going to sting.
Everything is changing. At least people say it is. All the talk is change and transition. What hasn’t changed is the need for energy. People can’t just wish away how dependent the world is on fossil fuels. For all the lofty talk hydrocarbons use is still, oh so inconveniently, growing.
Gamblers love to think this time things will be different. One last roll of the dice will redeem all previous mistakes. For once, key elements in the subsea market are altered. In a way that must make the market players feel giddy or allow them to play the proverbial tough guy gangster like the biggest ham actor going.
A unique market cycle is starting. Demand is up and intensifying. But the supply side was already heavily reduced from panic measures in the downturn that saw all sorts of tonnage scrapped and others sold off to permanent new role homes. That would be a great fillip on its own. But there’s more.
Normally, at this stage of a subsea about-turn, vessel owners and banks alike would have lost their heads and be ordering new ships like it was Christmas Eve and they’d forgotten to buy any presents. Not this time. Not even close. The orderbook is close to nothing, nada, niente, zilch, zip. And there’s no new market players acting mean and bidding low to get track record either. That’s never happened before.
Rising demand and static, or even falling, supply means only one thing. More and more tension. Prices will keep on going up. End clients could be caught on the hop and likewise contractors that are too light on ships could find all the available toys have someone else’s name on them. Now’s a time for money to be made again.
The latest SOR annual report and forecast’s horizon is out through 2030. Even in a long-term market that length of outlook is essential. All the issues the market faces are addressed head on in an unswerving fashion and presented in a down to earth, engaging fashion that everyone can relate to. It’s far from some desiccated academic exercise and shows the real-world implications for all sides of the market. It’s what anyone that’s part of the subsea market really needs to know and needs to take heed of.
SOR has been producing annual subsea forecasts for well over 20 years. Getting it right isn’t easy, but this report series has been on the mark throughout. Everything SOR does is based on constant direct market contact. It’s anything but some fad projection based on public domain information designed to fool a client once or twice. Free market intelligence is worth exactly what someone pays for it.
For further details contact Jo Slade at jslade@strategicoffshore.com or telephone +44 1224 498023.