The subsea market is gathering revenue pace because of a stable demand and rising raw material costs. For the last year it grew by some 29%. Arthur D Little's market research survey reflects a an increasing percentage of oil and gas production is based on subsea production. And it forecasts continued growth...
The subsea market is gathering revenue pace because of a stable demand and rising raw material costs. For the last year it grew by some 29%. Arthur D Little's market research survey reflects a an increasing percentage of oil and gas production is based on subsea production. And it forecasts continued growth for the medium term. Some 800 companies, providing direct employment for around 30,000, are involved in the UK subsea sector.
Subsea UK's chief executive, David Pridden, said: "The UK remains an attractive market for most players with potential for continued high levels of activity. However, most of the bigger companies are focusing on developing work streams and key projects in areas such as West Africa, North Africa and Asia Pacific, as well as Australia, Brazil and the Gulf of Mexico."
However, there are challenges ahead. The findings from the latest study released today also show that international business accounts for just over 50% of the sector's revenues. Exports have risen by 26%, increasing at a similar rate to the market growth.
Mr Pridden goes on to argue that the industry must deal with the export challenge: "The key to future growth will be the ability of UK companies to fully capitalise on the international potential. At the moment the UK is the global market leader, but we risk losing out to the likes of Brazil, Norway and the US if we cannot meet the critical demand for suitably qualified engineers and become faster at bringing new technology to market.
Mr Thuriaux-Aleman said that the study, which highlights recent market consolidation,across the UK subsea market, "highlights the opportunities consolidation can provide to integrate service delivery, access new distribution networks and develop economies of scale to deal with escalating material costs."
