Annual 2020 Floating Production Systems Report
WER's 2020/24 forecast of floating production system orders is now available. The 95 page report provides our assessment of ten underlying market drivers that will determine the pace of orders for production floaters over the next five years. We examine future oil/gas demand growth, deepwater's role in the future energy supply mix, risk of future oil/gas supply disruption, future oil and gas prices, capex budgets of deepwater field operators, competitiveness of deepwater with shale/tight rock development for upstream capex resources, access to capital for deepwater projects, impact of EPC/leasing contractors' capacity constraints on pace of future FPSO orders and impact of opening Brazilian deepwater resources to foreign investment and possible Petrobras privatization. This is followed by our forecast of orders-- segmented into five major types of production systems. Reflecting our assessment that the underlying market drivers support growing investment activity in the floating production sector over the next five years, our production floater order forecast for 2020/24 is higher than last year.