The Q4 edition of Westwood’s World Oilfield Equipment Market Forecast has been released this week, with upward revisions to the expenditure growth outlook for the sector. During the 2017-2021 period, global expenditure is projected to total $608bn.
- Global expenditure of $608bn over 2017-2021 with 2% CAGR over forecast.
- North America to account for 48% of total onshore spend.
- E&P related spend to total $457bn, 75% of forecast expenditure – driven by production related expenditures and sustained oversupply in service company dominated markets.
The offshore equipment sector has seen tentative improvements in sentiments through 2017, with a handful of high profile projects reaching final investment decision (FID). In the offshore rig space, however, the market remains heavily oversupplied, with minimal ordering expected over the next few years.
Over the long-term, Westwood expects an improvement in ordering into the next decade for high spec deepwater rigs, although still a -3% CAGR over 2017-2021 for offshore expenditure, due to a significantly smaller pool of projects in the pipeline than over recent years.