February 2022 Monthly Floating Production Systems Report
The oil and gas sector has been suddenly impacted by military action that will likely create a supply disruption. Crude prices spiked to $105 on 24 February as Russian forces attacked Ukraine. While crude prices fell back to under $100 later in the day, crude will likely go much higher if tensions in Europe continue to grow. Gas supply in Europe will also be impacted. This comes at a time when the pace of production floater contract awards has quickened to around 12 orders per year and a record backlog of 30 production floater contracts are lined up for award over the next 18 months. This award backlog is likely to grow further as supply disruption adds pressure to accelerate oil and gas project starts. But ability of the deepwater supply chain to take on a substantial growth in production floater projects presents a major barrier limiting production floater awards. Cost escalation is bound to follow. All is discussed in WER's February floater report. Also in the data section of the report are details for 195 floater projects in the planning stage, 58 production or storage floaters now on order, 305 floating production units currently in service and 29 production floaters available for redeployment contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 25 February.