The European outlook for the offshore pipe industry in 2014 is positive, according to a recent study conducted by Tata Steel.
The study, conducted by Europe’s second-largest steel producer, points to high energy demand from Africa, Asia and BRIC (Brazil, Russia, India and China) nations which will continue to drive offshore developments.
The study highlights the growth in deepwater developments in Africa and Europe as signs that the offshore pipe line industry is set to continue its recovery.
Richard Broughton, commercial manager for the pipe lines division of Tata Steel, said: “While 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 continue to step up to the challenge, push the boundaries and drive innovation.”
Investment in deepwater exploration has increased significantly over the past year and is expected to continue as easy-to-reach reserves continue to be depleted.
Also emphasized is the likely growth in pipeline transportation as new sources of shale gas come online. In particular, the report highlights Russia as a region of significance for 2014.
Broughton added: “Increased investment from operators will see infrastructure requirements grow. We are beginning to see 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 pipe installed. Both represent significant opportunities for the pipeline industry. Shale will also play an important role, particularly as renewable energy progress has been intermittent.”