World Oilfield Equipment Market Forecast 2017-2021
Driven largely by a recovery in the US shale patch, Douglas-Westwood (DW) now expects total onshore expenditure of almost $385bn over the forecast period. Offshore, on the other hand, will see a decline through to 2021, despite seeing improving prospects in 2017.
DW's World Oilfield Equipment Market Forecast Q1 2017, now in its 3rd year, shows an onshore market recovering from one of the worst downturns in living memory. The forecast, now covering 2017-2021, shows an anticipated recovery averaging 4% year-on-year growth for onshore oilfield equipment expenditure. Led by a continuation of the recovery in US onshore drilling activity, DW expects growth rates across all onshore upstream equipment lines over the new forecast period. Onshore expenditure will total $385bn over 2017-2021, compared to the $371bn expected over 2016-2020 in the last edition of the report.
Offshore expenditure, on the other hand, is not expected to see a recovery in fortunes - despite an improvement in market sentiments over recent months. Minimal new orders since 2014 and a persistent oversupply in the MODU market will sustain the bearish outlook for the offshore equipment sector, which is dominated by high cost, low quantity units such as FPSOs, drillships and fixed platforms. While some high-profile orders have already been placed in 2017, this is not expected to offset the decline in the offshore market beyond an 8% jump in spend in 2017.
The World Oilfield Equipment Market Forecast offers unique insight into over 60 different equipment types across upstream and midstream and is an essential product for business planners and those looking to make informed investment decisions. Drawing from DW's cutting edge SECTORS product and a wide-range of other internal databases (including land rigs, pipelines, helicopters and upstream infrastructure), the World Oilfield Equipment Market Forecast also takes account of the latest macro-economic trends through daily updated databases and explicit commodity price, global inflation and supply chain pressure inputs.