Unprecedented Demand for Floating Production Systems Forecasted, but Will Supply Chain Pressures Stifle the Growth?

As the global oil and gas industry pivots towards floating production systems, Energy Maritime Associates (EMA) has released a pivotal report today forecasting robust demand, with projected orders reaching up to $173 billion for as many as 168 units within the next five years. The market is predominantly driven by Floating Production Storage and Offloading (FPSOs), Floating Liquefied Natural Gas (FLNG) units, and production semi-submersibles.

However, this surge in demand comes with its own set of challenges!

The “Floating Production Outlook Report (2024-2028)” offers a thorough analysis and warns of potential supply chain bottlenecks. With shipyard slots for FPSO hulls and other integral orders nearly fully booked through to 2026, the industry could face significant project timing and cost implications as constructors scramble for alternative suppliers. Despite these challenges, the report shines a light on strong project economics buoyed by high hydrocarbon prices, low project break-evens, and the comparatively low carbon footprint per barrel of these systems.

“Our in-depth report does not just chart out the demand but provides a clear-eyed view of the potential hurdles ahead,” says David Boggs, Managing Director of EMA. “It’s crafted to arm industry executives with actionable intelligence, balancing the excitement of a booming market with the realities of supply constraints.”

The Floating Production Outlook Report is more than an industry forecast; it’s a strategic tool. Spanning over 200 pages, the report delineates EMA’s proprietary market outlooks across regional landscapes and floating infrastructure segments, offering a granular look at the trends shaping the future of floating production.

This comprehensive guide is now available for industry stakeholders aiming to navigate the complex market currents and align their capital allocation and contracting strategies with confidence.

For those at the helm of strategy in the energy sector, EMA’s latest report is an indispensable compass. The report can be directly purchased from EMA’s website at www.energymaritimeassociates.com

About Energy Maritime Associates (EMA): EMA, post its merger with Archer Knight, is a leading provider of data, analysis, and advisory services, tracking floating energy production trends across the globe. With the recent establishment of its office in Aberdeen, EMA is poised to deliver enhanced support to clients in Western Europe, reinforcing its commitment to delivering cutting-edge market intelligence in the floating energy sector.

For further information, please contact: David Boggs (Americas time zone) Yun Xu (Asia time zones) David Sheret (Europe, Africa, Middle East time zones)