Gas & Oil Trends For 2019

 It is expected major oil companies are going to be focusing this year on offshore drilling with a forecast of $208 Billion US dollars. As the race for companies to purchase available blocks. Companies with the expertise in deep-water projects are going to be the front-runners and see the highest dividend.

With oil price still high the oilfield service sectors are going to benefits from it. “The offshore service market is like a super tanker: It takes time to accelerate. The uptick in new projects in 2017, 2018 and now 2019 will be enough to turn revenue growth positive to mid-single digits as offshore capex is set to increase due to the recent years of capital commitments. And on top of that comes expected increase in operating expenses,” Martinsen said in the December report.

Also, the industry is still on the side of cautious about the immediate future “With oil prices trading below $60/bbl, there continues to be some uncertainty on 2019 E&P spending, particularly offshore,” according to the chief executive of a Norwegian oilfield surveyor firm TGS Nopec Geophysical, as quoted by Bloomberg.

There is still surplus offshore drilling and exploration capacity. With a moderate demand of drilling vessels this year, about 30 percent of deep-water rigs remain idle this year. It is 5 percent less from the number of rigs in 2018. It is still a great number and a lot of capacity for all the projects that are currently in the dockets.

Recovery of the oilfield series sector is expected to be at a lower rate than the exploration and production industry.

The Middle East region is going to benefit from the offshore rise. It is expected 30 percent of the projects should be approved. South America should have 25 percent of their projects approved. Only 15 percent in Africa and Asia combined. The remainder should be in Europe and North America combined.

Overall it should be a good year for offshore exploration.