Deepwater Expenditures to Increase 11.7% Per Year 2019 - 2021

Subsea oil & gas operators worldwide report plans to increase subsea development expenditures by 11.7% per year 2019 – 2021. Gulf of Mexico operators report plans to increase subsea development expenditures by 14.2% per year and international subsea operators report plans to increase expenditures by 9.5% per year.

Kimberlite Oilfield Research recently published the 2018 Subsea Equipment and Services report based on interviews with 102 subsea engineers and managers representing 46 unique operating companies managing a total of 4,563 subsea wells worldwide.

The updated forecast reveals that subsea oil & gas operators are generally optimistic overall about the future and are willing to increase investment in subsea development projects.

Kimberlite Research also tracks the broader drilling and completion expenditure trends for the deepwater oil & gas segment. The deepwater sentiment index improved in late 2017 (rising above the critical index rating of 50.0) and the improved operator sentiment is also validated in the Subsea Equipment & Services report published in June, 2018 with an overall worldwide sentiment index of 66.5.

The exhibit below highlights the trend in deepwater drilling and completion expenditures over the next 12 months and provides the operator sentiment index trend going back to 2016 as a point of reference.

This analysis is based on i