July 2023 Monthly Floating Production Systems Report
Crude prices are back in the low $80s as supply concerns get greater foothold and expectations for the near term economy look a bit better. The IEA expects 2023 to be a record year for oil demand, though the group is projecting oil demand growth to slow over the next five years. Meanwhile offshore drill rig operators are reporting strong demand and rising day rates as E&D activity expands. The list of floater projects in the near-term planning stage remains very strong, with thirty-four floater projects lined up for an investment decision within the next 18 months, assuming supply chain tightness and financing access does not limit the pace of awards. Woodside in July proceeded with its floating production project offshore Mexico and a major FLNG project in the GOM appears to have taken a big step forward.