The Global Subsea Pumps Market Is a Growth Area in the Oil and Gas Industry
The global subsea pumps market was valued at more than one billion USD in 2014, making it a huge growth area in the oil and gas industry. Their value is a result of the demand from offshore production activities in both North and South America, as well as Europe. Unfortunately, as oil prices declined in the middle of 2014, and as declines continued into 2015, the growth prospects continuing into 2016 are limited.
Oil prices peaked in 2013 with a Capex of nearly $700 billion in overall exploration and production activities. In 2015, there was more than a 20 percent investment dip compared to 2014. Unfortunately, it is expected to decline even further by 5 to 10 percent in 2016. The good news is that at the end of 2017, the oil price is anticipated to stabilize and reach $80 per barrel by 2018, which is a wonderful sign for the subsea pumps market.
According to MarketsandMarkets, the subsea pumps market is expected to be valued under one billion USD through 2016. However, subsea boosting is the single largest application, as it held more than half of the market in 2014, thanks to the addition of the Helico-Axial and Twin Screw pumps and Electrical Submersible Pumps. It will dominate the market in the coming years.
With so many cancelled E&P projects in 2015, few major contracts were completed in the subsea area, including one by OneSubsea which originally included the supply of a 15,000-psi subsea pump system in the Gulf of Mexico by Shell. Project cuts encourage mergers, joint ventures, and technological partnership with the focus on improving efficiency instead.
Subsea pumps, in the current market of low price oil and stiff competition, will grow steadily over the coming years. It’s projected by 2018 that delayed and cancelled subsea projects will most likely resume, pushing market growth in the area of subsea systems.