July 2022 Monthly Floating Production Systems Report
Brent spot crude this month briefly dipped below $100 intraday as fear of an economic downturn pressures near-term oil prices. But Brent rebounded to $106 at end-month and the futures price of crude for delivery five years out has remained stable on positive oil demand outlook. Meanwhile major upstream operators have been raking in record cash and the offshore industry supply chain is operating at high pace. Backlog of near-term production floater contracts continues to strengthen – though ability to take on more contracts is getting increasingly tight. The brightest light is the floating LNG regasification sector where all regas-fitted LNG carriers available three months ago have been vacuumed up for terminal use in Europe. The strong LNG market has also sparked interest in building more FLNGs and a speculative contract for a quick delivery jack-up mounted LNG plant was placed in July. All is discussed in WER's July floater report. Also in the data section of the report are details for 196 floater projects in the planning stage, 71 production or storage floaters now on order, 305 floating production units currently in service and 23 production floaters available for redeploy contracts. Accompanying excel spreadsheets provide the report data in sortable format. Information is current as of 29 July.