Sopuruchi Onwuka

Logistics and oilfield services providers in the global offshore energy operations have cheery news as operators’ investment in the terrain will continue to grow by annual 5 percent; reaching a stunning $250 billion next year.

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According to advisory services from Rystad Energy emailed to The Oracle Today, investments in the offshore sector are on the rise as capital expenditures across oil, gas, and wind energy sectors continue to escalate. And the outcome would be expected oil production from the sector to drive production growth for the rest of this decade.

According to a recent report by Rystad Energy’s head of upstream research, Espen Erlingsen, combination of high oil prices, improved economics for offshore project and lower tight oil growth form the key drivers for enhanced offshore spend.

He estimated total offshore investments to reach almost $250 billion next year, meaning the offshore sector will most likely be the source that will drive the growth in oil production for the rest of this decade.

Rystad had earlier reported that global expenditure on subsea facilities is set for a 10% compound annual growth rate from 2024 to 2027; projecting a total capex spend for the period to exceed $42 billion.