Demand for wet Christmas trees in 2022 will hit the highest level in nearly a decade, according to a new forecast from Westwood Energy. The company predicts that the global oil and gas sector can hire up to 354 units, the highest number recorded since 2013. The forecast considers that the barrel of oil should average US$ 65 for the year. Of the total forecast, 173 units (49%) are classified as firm, 125 units (35%) as probable and 56 units (16%) classified as possible.
Still taking into account the estimated number for 2022, Westwood says that 53 units (15%) have already been announced, but are subject to government approvals and final investment decision in the respective fields. In relation to last year, the company said that the oil and gas industry hired a total of 173 underwater Christmas trees, a 9% decrease compared to 2020.
“OurChristmas Tree Outlook for underwater tree demand for the entire 2022-2026 period is currently at 1,380 units, an increase of 25% compared to the 2017-2021 period. Latin America is expected to account for approximately 36%, driven by Petrobras’ continued investment in its pre-salt basin and ExxonMobil’s Stabroek ventures,” concluded Westwood’s lead subsea analyst Mark Adeosun.
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