Douglas Westwood: FEEDing the Recovery
. The process of working through these backlogs has thus-far cushioned the market against the decline in order activity seen in 2015. However, these backlogs are now being eroded rapidly as new orders are dwindling. This will expose original equipment manufacturers (OEMs) to the reality of the oil price downturn, with a trough in installations expected in 2017-2018. With many offshore projects delayed or cancelled due to the oil price downturn, there is understandably a media focus on these delays. But what are operators doing to position themselves for the expected recovery in activity and
Work Class ROV Market Faces Short-term Challenges
previous five-year period, however, near-term we see some difficult conditions with weaker dayrates and lower levels of utilisation for the work-class fleet. We expect the global ROV market to significantly contract in value terms in 2016 (-6.3 percent) and then plateau in 2017, due to the current oil price downturn." The conclusions of the report highlight the current market challenges with weaker dayrates and lower levels of utilization for the work-class fleet. DW anticipates the global ROV market to significantly contract in value terms in 2016 (-6.3 percent) and then plateau in
ROV Operations Market Facing Near-term Challenges
previous five-year period, however, near-term we see some difficult conditions with weaker day rates and lower levels of utilization for the work-class fleet. We expect the global ROV market to significantly contract in value terms in 2016 (-6.3 percent) and then plateau in 2017, due to the current oil price downturn." "We will see recovery later in the decade and this results in an overall compound annual growth rate (CAGR) of 4.3 percent for ROV expenditure over the forecast period. For the fleet, we expect to see an additional 193 units over the period, increasing from 983 ROVs in 2014 to
February 2024
