During the last quarter of 2020, everyone can agree that economically, we have seen better days. Especially in the energy industry, spending cuts, revised budgets, and slashed investments have played an impact. However, we are starting to see hope for offshore drilling stated by Rystad Energy, a global oil and gas analytics firm. Their analysts anticipate a 40% growth in Floatable Production Storage and Offloading facilities (FPSOs). China has taken an interest in FPSO’s and prepared its shipyards for an increase in new orders.
When it comes to offshore oil, companies have been hit with two pricing crisis within the last 5 years, along with the coronavirus in 2020. With deep water drilling being majorly threatened from these factors along with investors pursuing more renewable energy sources, companies are looking for more shallow water projects, Paul Takahashi from the Houston Chronicles stated. Shallow water drilling has less of a long-term risk as well as a lower absolute cost of projects making this more of a future trend.
Brazilian owned oil group, Perrobras just launched a tender for its very first FPSO this past week. It has the capacity to produce 100,000 barrels per day and capable of operating in 1,400 meters of water. The platform is equipped with production facilities to process and separate oil and natural gas. With anticipation of a vaccine in spring of 2021, Perrobras is looking to increase its FPSO production for 2021.