Is the offshore oil & gas market poised for a comeback?
2021 has proven to be a very interesting year for the global energy market as we have seen the rapid development of offshore renewables (floating wind, hydrogen, carbon capture, wave power, etc.) seemingly intersect - some would say collide - with the rebound of the traditional oil & gas market. This confluence of energy sources is creating 3 main headaches that have to be accounted for, in the form of competition for 1) capital to fund planned projects/developments 2) raw materials to build said projects and 3) human brainpower to engineer and deploy said projects. With domestic and global financial institutions scrambling to sort out this mess, ESG and Carbon Neutrality commitments and requirements are making funding efforts even more nebulous and difficult. Already, we are seeing many traditional oil & gas companies, such as Shell, shed their "dirty" oil & gas assets while the market prices are high and using the resulting profits ostensibly to fund renewables projects. Still others, like ConocoPhillips, are picking up these properties in the Permian Basin, perhaps rather early in this purported energy transition, to bolster their long term vision and position of oil & gas demand. It will be interesting to see in hindsight - in say 3-5 years time - what this intersection of markets and competition for the previously mentioned 3 key resources will actually yield. Will it eventually level out with a nice equilibrium; will it create dramatic swings in market dynamics; or will the mashup create much higher commodity prices, translating to higher prices at the gas pump? Hard to know, really. One thing is certain though, traditional oil & gas isn't going anywhere anytime soon, even with trillions of investment dollars pouring into renewable energy developments and the global supply chain's efforts to reduce LCOE (levelized cost of energy). So are we poised for a rebound in offshore oil & gas? Ensearch welcomes your thoughts and opinions.
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Subsea Products & Services
Deep Down's Perspective & Offering
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"Providing Subsea Production Reliability"
Deep Down, Inc. is a leading provider of key oilfield services and equipment for complex deepwater and ultra-deepwater applications. They have created innovative and customized solutions that meet the global needs of their customers. The Company primarily targets high value assets and mission critical projects for offshore operations between the wellhead and production facility. Deep Down’s highly experienced service teams and engineered solutions provide world class installation, commissioning, and maintenance support safely, efficiently, on time, and on budget.
Clients include: Shell, BP, ExxonMobil, Chevron, TechnipFMC, Subsea 7 and AkerSolutions, and many others in the offshore energy space.
The industry demand for improved efficiency has led their engineers to develop an array of offshore installation aids and products to assist in difficult deepwater installations. They work closely with their client's team to provide safe and efficient products that perfectly compliment assigned projects.
In addition to the company’s core product and service offerings in the traditional oil and gas industry, Deep Down has recently been actively engaged in discussions with different non-oil and gas companies, with a focus on cable management of offshore power cables, subsea battery technologies and hydrogen applications. Deep Down is currently shortlisted for a flagship offshore wind project in the New England area, and is fully committed to supporting its customers as they pursue their energy transition ambitions.
Deep Down’s 20-acre open space and 260,000 SF under roof facility is located in NE Houston, Texas USA and is within close proximity to the Port of Houston and is fully capable of handling a variety of fabrication and manufacturing requirements including carbon steel and alloy welding, electrical and electronic wiring, assembly, testing and commissioning of subsea hardware, installation equipment, and specialized products as well as storage and equipment refurbishment.
Deep Down has the experience and industry knowledge to support all aspects of subsea field development. From the design and manufacture of specialized subsea hardware, through installation and commissioning, they cover the entire spectrum of expertise in subsea oil field services. Deep Down’s experience as an installer, manufacturer, and operator of equipment is instrumental in interface engineering and execution, providing for smooth project installations. The involvement of their offshore service technicians and engineers imparts valuable knowledge to ensure exemplary installation and commissioning procedures.
Deep Down also offers storage and equipment refurbishment services as well as the following services:
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"The energy transition is real, but oil and gas drilling to attract $1.7 trillion through 2030"
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The below summary is taken from Rystad Energy's September 2021, Supply Chain Newsletter which does an excellent job of forecasting the spend for E&P, which then impacts the entire supply chain down to the small to medium sized public and privately held firms in the energy services space. |
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Traditional oil and gas companies are getting all on board with the energy transition, with upstream players spreading into renewables and oilfield service companies seeking to serve a wider energy market than just oil and gas. Governments are setting ambitious targets to minimize their CO2 emissions and speed up the shift towards green energy, but that does not mean that oil and gas production will cease or lose its significance in the energy industry. In fact, while we expect tremendous growth in renewable energy, be it wind, solar, geothermal or hydrogen, oil and gas will continue to serve as a key energy source for at least the next decade. That means demand for drilling and well services will remain strong – Rystad Energy anticipates that a total $1.7 trillion will be spent on well services in the 2021 to 2030 period, with PetroChina, Saudi Aramco and Rosneft leading the investments.
PetroChina is expected to spend $120 billion through 2030, followed by Saudi Aramco and Russia’s Rosneft each spending around $70 billion. PetroChina is poised to boost spending within the unconventional shale segment by on average 5% every year to 2030 as China aims to lift its domestic crude oil output and become less dependent on imports. Saudi Aramco will split its $70 billion into offshore shelf, shale and conventional onshore, with the latter segment receiving the largest share. Rosneft will focus almost entirely on Russia’s conventional onshore segment with nearly 98% of the company’s total investments.
Spending on upstream well services is expected to continue to make up a major share of exploration and production players’ expenditures – but at the same time, companies like ExxonMobil, Shell and Chevron are ramping up their efforts to tackle the energy transition. ExxonMobil has invested $10 billion over the past two decades on low-carbon solutions such as carbon capture and storage, and plans to invest $3 billion more through 2025. Chevron has allocated $300 million for investments to advance the energy transition in 2021, although this represents just 2% of its total budget and significantly trails the company’s European peers. Chevron is also exploring alternative power sources, such as fusion technology and advanced geothermal, which are emerging technologies with reduced intermittencies compared to other renewable sources.
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Deepwater Operations & Topsides, Platforms, Hulls
-In-Person Event-
Deepwater Operations & Topsides, Platforms, Hulls, 2021, October 5 - 7, to be held at The Moody Gardens, Galveston, TX. Topsides, Platforms & Hulls Conference & Exhibition is the offshore industry’s only event dedicated to the topsides, platforms and hulls for both deep and shallow water development. A comprehensive technical program presented concurrently with a shared exhibition hall, Topsides, Platforms & Hulls covers the design, engineering, construction, transportation, installation, and modification of topside structures, platforms and hulls.
The Deepwater Operations Conference & Exhibition will continue the tradition of excellence in addressing operational challenges and regulatory considerations in developing deepwater reserves. Challenges in deepwater operations are complex and command the industry's attention to develop long-term solutions to improve HSE and production efficiency. Deepwater Operations provides a unique experience for attendees and exhibitors to share, learn and connect in a forum dedicated to addressing these challenges.
These conferences allow for the free and open exchange of ideas, as proceedings will not be published and press is not allowed to attend the sessions. Only by participating will you reap the benefits.
The advisory boards have solicited presentations from industry leaders who address the latest in trends, issues and developments. Attendees can expect to learn and discuss the real-life issues and solutions relevant to the deepwater operations and topsides, platforms and hulls industry.
The Deepwater Operations and Topsides, Platform and Hulls Conference is led by an esteemed Advisory Board of industry experts, each a specialist in her/his field of expertise from these leading industry key players. Ensearch have been a proud participant for many years of this compelling event and look forward to a well attended, safe gathering.
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Quotes and Mantras
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"We shape clay into a pot, but it is the emptiness inside that holds whatever we want.” Lao Tzu
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“Many of life’s failures are people who did not realize how close they were to success when they gave up.” Thomas A. Edison
- Courage changes everything!
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Ensearch specializes in recruiting Brainpower for C-Level, V.P., G.M., Engineering, Project Execution and Finance & Accounting positions in the Offshore Renewables and Offshore Oil & Gas Space. We bring 25 years of proven, hands-on experience in helping leading technology driven companies like Shell, Siemens, Aker Solutions, and KBR hire the best talent the market has to offer. We actively participate in conferences, technical forums, professional society luncheons and other activities necessary to keep abreast of industry trends, learning new technologies and recruiting/networking with the best in the business. We're passionate about sharing how The Energy Industry and Career Management intersect and hope you find this newsletter useful.
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