July 2017 Monthly Floating Production Systems Report
As described in the July WER report, oil prices continue to be constrained in the upper $40s, reflecting the dampening effect of the large crude inventory overhanging the market. But crude demand growth is now outpacing supply growth and there are increasingly clear signs that crude inventory is declining. Overall, it seems clear that rebalancing of the global crude market is underway – though the pace is slower than the market earlier anticipated. And as described in our July report, even in the relatively weak current pricing environment there has been a recent flurry of investments in new production floater projects. Several floater projects have moved to the development stage over the past month -- including modification and redeployment of two FPSOs, an FPSO conversion and an FSO lease for use offshore Myanmar. Also in the report are details for 200 floater projects in the planning stage, 50 production or storage floaters now on order, 293 floating production units currently in service and 29 production floaters available for redeployment contracts. Charts in the report update the location where floating production and storage systems are being planned, operating, being built and to be installed. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 23 July.