March 2020 Monthly Floating Production Systems Report
The coronavirus crisis and oil price war has upended the offshore oil and gas sector. Oil demand has sharply fallen as the virus spread shuts down global economic activity. In parallel, Saudi Arabia and Russia kicked off a full-fledged price war by flooding the market with oil to see who blinks first. The combination is forcing field operators to defer investment plans – and the impact on the floating production sector is a repeat of the 2006/07 financial meltdown. We expect the combination of events will shut down planned floater project starts through the remainder of the year -- and likely into 2021. All is discussed in the March WER report. Also in the data section of the report are details for 213 floater projects in the planning stage, 49 production or storage floaters now on order, 305 floating production units currently in service and 35 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 March.