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Are major subsea oil firms set for a strong period of growth?

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With all the talk of fracking and on-shore extraction plans for shale oil and gas reserves, the subsea industry seems to be operating away from the glare of public attention.

The media is devoting a great deal of coverage to the development of new methods and extraction sites for natural energy resources, but the attention is being diverted away from what promises to be the most important area for the industry.

As protests continue to bog down movement for the inland developments, what are the prospects for the offshore subsea industry and can the major players expect a strong period of growth?

Industry in the UK

The UK subsea industry has already had a major impact on the North East region. Recent government figures show that there has been a 50% growth in investment levels in the past three years alone, and annual revenues now stand at around the £1.5 billion mark.

British industry overall has benefitted from almost £9 billion worth of investment in this particular area of operations. This surge has led to the creation of an estimated 66,000 jobs.

So there is no denying that the UK’s North Sea sector is definitely looking positive for any companies that chose to get involved. Chevron, the US oil giant, is one such company and their new subsea projects in the Rosebank and Alder fields are seeing them commit as much as £550 million to them.

The global picture

The broader picture across the world is very similar. Subsea 7, a UK-based firm which is listed in Norway, is one of the top four international companies in its sector and recent announcements concerning new projects that promise strong earnings saw its share price jump by 9%.

The company provides offshore construction services and its operations in the North Sea and Canada are performing particularly well.

Other established names are also increasing their activities in the subsea area of operations. Samsung, the South Korean technology company, has a heavy industry arm that aims to become a global leader in the field, having set a target of 50% of their revenue from offshore operations for Samsung Heavy Industries.

With subsea operations presenting unique challenges that also offer high returns, there is plenty of opportunity for major companies that are willing to put in the kind of finance needed to make the most of what may be a productive period. 

To find our more about how Mirage Machines service the subsea industry, read our case studies.

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