Smart Australian oil and gas companies still have plenty of opportunities
Just where is the Australian oil and gas industry headed and what are the next projects “over the horizon” that the service and supply sector can look forward to?
If you ask that question of a half a dozen industry specialists, you would most likely get six different answers, but the one thing we all know is that there will be many, many opportunities for many, many years to come for companies that are focused on the right areas.
While some will tell you that the “boom” times have passed with the unprecedented development of Australia’s LNG sector now moving to the operations phase, but those in the know see a bright future for Australia oil and gas companies and especially innovative
service and supply businesses.
In a just released Australian Oil & Gas Roadmap report, the CSIRO and NERA (National Energy Resources Australia) say there are a number of new and highly valuable opportunities for the petroleum industry in this country.
According to CSIRO Chief Executive Dr Larry Marshall, the Australian oil and gas sector has an opportunity to re-invent its future and improve its market position through innovation. “We believe this sector can continue to contribute to Australia’s future economic prosperity, which is why we’re investing not only in solving today’s challenges, but also in the breakthrough science we need for tomorrow’s solutions like our new Deep Earth Imaging,” Dr Marshall said at the launch of the Oil & Gas Roadmap.
The Oil and Gas Roadmap has identified a number of strategic business, science and technology growth areas it says are vital to the long-term success of the sector, taking into account relevant oil and gas megatrends.
• Being more efficient in exploration and production to cost-effectively unlock resources; and
• Using digital and automated solutions to improve the economics of current assets.
Other leading industry specialists have identified a number of significant areas which offer major business opportunities, and in particular repair and maintenance and decommissioning operations.
The recently published World Downstream Maintenance Market Forecast from Douglas Westwood is tipping a strong recovery in the market in 2017, with global expenditure forecast to rise by four per cent compared to 2016, reaching US$54 billion.
The report found that growth in the market is expected to be sustained over 2018-2022, with global expenditure forecast to rise at a 3.5% CAGR over the next five years. The asset services sector is forecast to account for 72% of downstream maintenance expenditure over the next five years, with asset integrity representing the remaining 28% of the market.
Another Douglas-Westwood report, Maintenance and Modification Offshore (MMO), forecasts a global spend of US$378 billion between 2017 and 2021, with Asia to dominate global spend, accounting for 24% of the market.
At the Collaboration Forum at AOG 2017 earlier this year, keynote speaker, Bernadette Cullinane from Deloitte, told attendees that upwards of $550 billion dollars is likely to be needed to be invested on maintaining and upgrading Australia’s string of world class LNG projects over the next 25 years.
Ms Cullinane also highlighted decommissioning and its potential as a major new market opportunity, stating that the future decommissioning of aging offshore oil and gas infrastructure in Australian waters could be worth anything up to $27 billion.
These topics will again be key points for discussion at the “free-to-attend” Collaboration Forum at AOG 2018 where there is a unique opportunity to link operators and the supply chain, all on the Exhibition Floor.
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