July 2020 Monthly Floating Production Systems Report
Impact of the Covid 19 virus on the oil sector has been devastating. Global oil demand declined more than 16 md/d during the second quarter – an historical record drop. While still way below pre-Covid 19 levels, oil prices have recovered somewhat from the demand shock/supply glut. After hitting single digits in April, Brent crude has gradually rebounded and is now trading around $43. But appetite for new upstream investment remains dampened and new deepwater project starts continue to be on hold. An exception has been Petrobras, which in July received board approval to begin the tender process to acquire three large FPSOs for use on the Buzios complex. Meanwhile, industry consolidation has kicked off with Chevron agreeing this week to absorb Noble Energy, the major deepwater gas player offshore Israel. More consolidation in the deepwater sector is likely to occur. All is discussed in the July WER report. Also in the data section of the report are details for 216 floater projects in the planning stage, 44 production or storage floaters now on order, 304 floating production units currently in service and 41 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 24 July.