Oil and Gas

Market overview

The low oil price environment of recent years and pandemic- driven collapse in economic activity saw major delays and cuts in oil exploration investment, resulting in fewer oil discoveries and reduced capex and opex spend. From the $50 low point of a year ago, the oil price has gained momentum in recent months, with increasing project expenditure forecast for the next two years. The Rystad outlook suggests in excess of 1,300 subsea trees, for mainly deepwater territories from early 2022 through to 2025. 

The sustained low oil price environment has advanced technical innovation in the oil service industry and reduced the cost of oil exploration and production. Oil service majors, OEMs and component manufacturers now collaborate to produce parts more efficiently on a ‘cost-out’ basis, while driving suppliers towards improved on-time delivery and shorter lead times. 

Market potential 

CSC has also seen the early signs of recovery in the oil and gas market, with demand for motion compensation systems increasing during the second half of 2021. Demand for Integrity Management services for diving support and offshore services vessels is also expected to recover throughout 2022.