The World Deepwater Market Forecast, published by energy analysts DouglasWestwood, forecasts continued growth in the deepwater sector with annual expenditures surpassing $24.6 billion by 2012.

“ Deepwater oil and gas production is increasing rapidly and output is expected to increase by almost 80% over the period to 2011. From 4.5 MMbp/d in 2007, deepwater oil production will grow to nearly 8MMbp/d in 2011, while deepwater gas production will increase from 1.6 to over 3 MMbop/d equivalent over the same period. To put this in context, deepwater oil production accounts for almost 15% of total offshore oil and gas production, but over the next few years its total share relative to shallow water output will grow--accounting for around 20% of offshore production by 2011”

“The ‘Golden Triangle’ of Africa, Gulf of Mexico and Brazil will account for three-quarters of global deepwater expenditure over the forecast period. However, the emergence of Asia as a significant deepwater region should not be overlooked. Indonesia, Malaysia and India all have development prospects on screen for the 2009-2013 period and the region should account for nearly 10% of deepwater Capex. Western Europe, will maintain its market share but growing activity will see actual expenditure increasing over 30%”

(Source: The World Offshore Oil & Gas Production & Spend Forecast 2007-2011,

Douglas-Westwood Ltd & Energyfiles)