Positive outlook for European offshore pipeline industry

The European outlook for the offshore pipeline industry in 2014 is positive, according to a recent report conducted by Tata Steel, a leader in the supply of innovative deepwater pipeline solutions.

Signs of recovery

The study points to high energy demand from Africa, Asia and BRIC (Brazil, Russia, India and China) nations, which will continue to drive offshore developments, and highlights the growth in deepwater developments in Africa and Europe as signs that the offshore pipeline industry is set to continue its recovery.

Richard Broughton, Commercial Manager for Tata Steel’s Pipeline Division, said, “Whilst it is undeniable that the economic recovery has been sluggish and as a consequence progress in major infrastructure projects has been delayed, we are now experiencing real signs of recovery and a change in momentum, both onshore and offshore. Budgets will continue to be challenged, but the industry will step up to the challenge, push the boundaries and drive innovation.”

Increased investment in the industry

Investment in deepwater exploration has increased significantly over the past year and is expected to persist as easy to reach reserves continue to be depleted. The likely growth in pipeline transportation, as new sources of shale gas come online, is also emphasised. In particular, the report highlights Russia as a region of significance for 2014.

“Increased investment from operators will see infrastructure requirements grow,” added Broughton. “Already we are beginning to see the signs of this offshore activity in regions like the Gulf of Mexico, where spending will represent a third of all deepwater activity globally and the Middle East, where existing brownfield infrastructure needs to be replaced and new infrastructure installed. Both represent significant opportunities for the pipeline industry. Shale will also play an important role, particularly as renewable energy progress has been intermittent.”

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/26022014/positive_outlook_for_european_offshore_pipeline_industry_106/