September 2021 Monthly Floating Production Systems Report
Crude prices have climbed to the upper-$70s, sustained by continued demand growth and the OPEC+ production curtailment agreement. Excess oil inventory has largely been eliminated, natural gas supply shortages have appeared in Europe and LNG prices have soared. Despite this, many upstream producers are in no rush to increase spending on capital projects, setting the scene for an energy shortage over the next few years. But activity in the deepwater sector keeps improving and the number of production floater contracts in the near-term queue remains at record high. Close to 30 floater contracts are lined up for award over the next 18 months. The principal constraint is the ability of the supply chain to absorb more orders, a problem that motivated Petrobras in mid-month to delay a major FPSO bid. Meanwhile, BOEM has raised its estimate of remaining US GOM oil and gas reserves, hurricane Ida caused substantial damage to deepwater assets in the GOM and Wison received a contract to build two nuclear power barges. All is discussed in the September WER report. Also in the data section of the report are details for 211 floater projects in the planning stage, 48 production or storage floaters now on order, 308 floating production units currently in service and 45 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 26 September.