EditorialMARINETECHNOLOGYApril 2014 www.seadiscovery.com REPORTERSubseaPipeline InspectionVia Underwater Laser ScanningGregory R. Trauthwein Associate Publisher & Editor The Arctic Energy Risk & RewardEmail: trauthwein@marinelink.comBrazilThe Northern FrontierOI 2014Technology Wrap-Upwww.seadiscovery.com NEW YORKhile the Offshore Oil & Gas markets continue to push further from 118 E. 25th St., New York, NY 10010shore in ever-deeper waters, the need for proven technology to work Tel: (212) 477-6700; Fax: (212) 254-6271more ef? ciently in increasingly hostile and unfamiliar environments FLORIDA215 NW 3rd St., Boynton Beach, FL 33435grows in tandem. And while growth in the energy sector continues Tel: (561) 732-4368; Fax: (561) 732-6984W Wto energize multiple markets, it is worthy to note that there are a few looming clouds on the horizon of this traditionally cyclical market. PUBLISHERJim McCaul of IMA has been a close friend and colleague for nearly 20 years, as he John C. O’Malleyjomalley@marinelink.comhas served as “Editorial Consultant” on MTR sister-publication Maritime Reporter & Engineering News for decades. McCaul arguably has more insight and information on the Associate Publisher & EditorFloating Production System market than anyone I know, as he has studied it meticulously Gregory R. Trauthweintrauthwein@marinelink.com– and generated C-Suite level quarterly market reports on the topic – for the last 20 years. As you know, these ? oating production system projects are multi-year, multi-billion dollar Web Editor projects, and they can serve as a bellwether for the general overall health of the market. Eric Haunhaun@marinelink.comToday there are 320 oil and gas ? oating production units in service, on order or avail-Contributing Editorsable for re-use in another ? eld, with FPSOs accounting for 65% of the existing systems Capt. Edward Lundquist, USN (Ret.)and 74% of the systems on order. While the number of production ? oaters in service has Claudio Paschoaincreased 84% over the past 10 years, McCaul notes in his latest monthly report for MR that the order projection for the coming ? ve years is from 104 to 150 production ? oaters, Production Manager Irina Tabakinawhich at face value seems strong but is signi? cantly lower than the ? ve-year forecast from tabakina@marinelink.comlast year of 124 to 190 units. Why the big drop?Production & Graphic DesignFirst and foremost, there are increasingly evident strains on the deepwater supply chain, Nicole Ventimiglianicole@marinelink.comas costs for projects, people and equipment grow exponentially, in tandem with project Sales & Event Coordinator complexity. Predictably, oil major capex budgets are starting to shrink, with ExxonMobil Michelle Howardsaying its capex spending for 2014 will be 6% less than last year, and Chevron cutting mhoward@marinelink.com2014 spending 5%. In addition, the rapid evolution of the U.S. shale oil and gas business Manager, Public RelationsMark O’Malleyis a growing factor, as oil companies are increasingly looking at faster, cheaper to develop momalley@marinelink.comprojects on land as an alternative. For now offshore remains a strong growth market, but as you enter into long-range planning later in the year, pay heed to the clouds forming on the Manager, Information Technology Servicesoffshore horizon. Vladimir Bibikbibik@marinelink.comCIRCULATIONKathleen Hickeymtrcirc@marinelink.comDownload our AppiPhone & AndroidADVERTISINGVice President, Sales and MarketingMarine Technology Reporter ISSN #867, Bayport, NY 11705Rob Howardhoward@marinelink.com 1559-7415 is published monthly Postmaster send noti? cation (Form Tel: (561) 732-4368 • Fax: (561) 732-6984 except for February, August, and 3579) regarding MemberDecember by New Wave Media, undeliverable magazines to Marine Advertising Sales Manager www.seadiscovery.com 118 E. 25th St., New York, NY Technology Reporter, 850 Montauk Lucia M. Annunziata10010-2915. Periodicals Postage Hwy., #867, Bayport, NY 11705Vol. 57 No. 3annunziata@marinelink.com at New York, NY and additional ISSN 1559-7415Tel: (212) 477-6700 • Fax: (212) 254-6271 mailing of? ces. USPS# 023-276Publishers are not responsible for 118 East 25th Street, Mike KozlowskiPOSTMASTER: Send address the safekeeping or return of New York, NY 10010kozlowski@marinelink.comchanges to Marine Technology Re- editorial material. © 2014 New tel: (212) 477-6700; Tel: (561) 733-2477 • Fax: (561) 732-9670fax: (212) 254-6271porter, 850 Montauk Hwy., Wave Media.JapanSubscription: All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means • amskatsu@ dream.comKatsuhiro Ishii To subscribe please visit mechanical, photocopying, recording or otherwise without the prior written permission of the publishers.Tel: +81 3 5691 3335 • Fax: + 81 3 5691 3336www.seadiscovery.com/subscribe6 MTR April 2014MTR #3 (1-17).indd 6 MTR #3 (1-17).indd 6 4/10/2014 11:53:55 AM4/10/2014 11:53:55 AM