SBM Offshore on FPSO landscape: Oil & gas demand unlocking financing with CCS poised for ‘biggest impact’ in emission cuts

(offshore-energy.biz) With a backlog of $33 billion and sustainability at the heart of its strategy to future-proof its floating production units, the Netherlands-headquartered SBM Offshore is expecting to see a new batch of 40 floating production, storage, and offloading (FPSO) opportunities in the next three years, out of which around 16 are anticipated to be within its target domain, as rising global energy demand, especially within the oil and gas arena, continues to loosen the purse strings, paving the way for smooth FPSO project financing.

As a brave new climate action-oriented world keeps shaping up against a highly volatile geopolitical landscape, many companies across the global oil and gas industry are working to adapt to these rapidly changing circumstances, which are affecting their ability to secure financing for their projects. Simultaneously, a backlash against the imposed net zero targets and greenhouse gas (GHG) emission reduction goals is spreading like wildfire across certain regions, with the anti-environmental, social, and governance (ESG) sentiment gaining significant inroads in the United States lately.

Those who oppose the net zero race see most decarbonization policies and measures as an unfair burden, which is being placed like an albatross around consumers’ necks. For these people, the net zero cross they need to bear is an illegitimate interference in the political system, thus, multiple lawsuits were filed against the U.S. government and investment companies over the past two years over decisions to move away from fossil fuel investments to come to grips with climate change. Many point out the possibility of risks being turned into opportunities.

While investments in FPSO ventures carry certain risks, such as delays, technical challenges, and oil and gas price volatility, they also bring a set of rewards with significant potential for high returns, especially given the growing energy demand and predictions related to the long-term necessity of offshore hydrocarbon production. Some analysts recently questioned the financial viability of FPSO projects because of new regulations tightening the noose around fossil fuel developments and their emissions’ footprint on climate change grounds.

Read full article: https://www.offshore-energy.biz/sbm-offshore-on-fpso-landscape-oil-gas-demand-unlocking-financing-with-ccs-poised-for-biggest-impact-in-emission-cuts/