The offshore oil and gas sector is set for the highest growth in a decade in the next two years, with $214 billion of new project investments lined up, Rystad Energy reported.
One of the leading global drivers is the sizable expansion of offshore activities in the Middle East. For the first time, offshore upstream spending in the region will surpass all others, lifted by mega-projects in Saudi Arabia, Qatar and the UAE. The area’s offshore spending growth looks set to continue at least for the next three years, growing from $33 billion this year to $41 billion in 2025. These countries are tapping into their vast offshore resources to meet rising global oil demand, backed by the necessary capital and infrastructure to outpace other producers.
“Offshore oil and gas production isn’t going anywhere, and the sector matters now possibly more than ever,” noted Audun Martinsen, head of supply chain research at Rystad Energy.
As one of the lower carbon-intensive methods of extracting hydrocarbons, offshore operators and service companies should expect a windfall in the coming years as global superpowers try to reduce their carbon footprint while advancing the energy transition.”
Although the Middle East is leading the way, Rystad Energy’s research shows that South America, the UK and Brazil are just slightly behind. Investments in the North Sea from the UK and Norway will rise in the next two years. UK offshore spending is set to jump 30% this year to $7 billion, while Norwegian investments will hit $21.4 billion, an increase of 22% over 2022. Brazilian upstream spending is projected to approach $23 billion this year, with Guyana investments totaling $7 billion. In North America, spending on offshore in the US will top $17.5 billion and $7.3 billion in Mexico.
