August 2021 Monthly Floating Production Systems Report
The Covid Delta variant and spiking infections have been generating concern about the future pace of economic recovery. As a result, in mid-month crude dropped to $65 before quickly rebounding to the low-$70s. Despite Covid concerns the near-term prospects for the deepwater sector look excellent. The major industry analysts expect oil demand growth to continue at a strong pace, OPEC+ appears to be able to successfully keep oil supply under control and crude inventory has been falling. Most important, deepwater contracting activity is very strong and the number of production floater contracts in the near-term queue remains at record high. In our report we summarize the status of 25 floater contracts that are lined up for award over the next 18 months. Meanwhile, two production floaters were ordered over the past month – a production semi for the GOM and an FPSO for use offshore Brazil -- the 8th and 9th production floater ordered thus far this year. All is discussed in the August WER report. Also in the data section of the report are details for 207 floater projects in the planning stage, 49 production or storage floaters now on order, 306 floating production units currently in service and 45 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating and under construction. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 26 August.