Subsea technology to thrive in current production economics
Subsea technology reduces production and operating costs, by eliminating the need to build fixed platforms.
One of GlobalData’s latest thematic reports, ‘Subsea Technologies for Oil and Gas Offshore Exploration and Production’, discusses the trends in subsea production systems that could open new opportunities in offshore oil and gas exploration and production.
The ongoing Russia-Ukraine conflict has disrupted global hydrocarbon supplies and pushed oil prices up to more than $100 in 2022. The conflict has led to wide-ranging sanctions on Russia, including efforts from the US and the European Union to end dependency on Russian imports. This would drive crude oil supplies from other regions, which in turn is likely to encourage companies to invest heavily in newer ventures, including deepwater projects operating with subsea systems.
Subsea deals with all the processes and technologies that are deployed below the sea surface. It primarily concerns the installation of equipment on the seabed to produce hydrocarbons. Subsea technology reduces production and operating costs, by eliminating the need to build fixed platforms.
Subsea equipment manufacturers have been working to reduce the cost of machinery installed on the seabed for deepwater production. Their efforts in streamlining material procurement, optimising subsea architecture and simplifying equipment installation have brought about an overall reduction in the complexity of subsea systems.
Subsea companies are increasingly working on the electrification of subsea systems. Subsea electrification optimises equipment maintenance by eliminating the need for frequent replenishment of hydraulic fluids. It also lowers the emissions generated by to and fro voyages of the maintenance crew.
Some of the leading oil and gas players in the subsea theme are TechnipFMC, Subsea 7, Schlumberger, Saipem, McDermott, Aker Solutions, Halliburton and Baker Hughes.