November 2021 Monthly Floating Production Systems Report
The top oil importing countries have launched a coordinated effort to release crude oil reserves to force prices down. But this is likely far too small to counter the strong market fundamentals driving high oil prices. Growing global oil demand and successful metering of oil supply have created a tight market. Crude spot prices remain in the low $80s and futures prices for crude delivery in the second half of the decade have strengthened. Upstream investment is getting more attractive, as indicated by the growing number of production floater contracts in our near-term queue. More than 30 production floater contracts are now lined up for award over the next 18 months – including several small opportunistic projects looking to take advantage of rising prices. Ability of the supply chain to take on all these contracts within 18 months is the major barrier potentially limiting awards. Meanwhile, three production floaters were ordered over the past month – bringing the total number of orders to 12 units so far in 2021. This is the fastest ordering pace in many years. All is discussed in WER's November floater report. Also in the data section of the report are details for 193 floater projects in the planning stage, 51 production or storage floaters now on order, 309 floating production units currently in service and 46 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 November.