Why is it a Global Issue?

An unlimited supply of oil is no longer a reality. This first warning was issued way back in 2003, when decline rates were accelerating as the capacity of oil-producing countries slowed down. The size of new discoveries became smaller, compared to the previous years and a review of plans and programmes by the big producers would reveal depleting reserves with a sparse capacity for recovery technologies. Starting in the 80's, the ratio of new discovery was: three barrels of production for every one barrel of new find.

With the rapid developments that our world is experiencing today, the longevity of conventional energy has become a realistic and considerable concern. We are using significantly more fossil fuels than we are finding. Oil supplies are becoming increasingly stretched to capacity, as reserves are absorbed by growing demand for energy worldwide. Several oil-producing countries are already well past their production peaks while others are beginning to see declining production. A future peak in world oil supply is inevitable.

In 10 years, India and China will need 17million bbl a day, which is more than Saudi Arabia's annual production. The search for diversified oil supply sources is crucial in order to meet the world's growing demand. The sustained rise of oil prices, as supplies shrink, will make deepwater developments economically feasible.

Offshore Activities in Deepwater

Emerging deepwater prospects are developing into a long-term growth sector. New technological advances that improve technical and economic feasibility of deepwater activities have come into use, improving the identification of viable deep-sea locations. 3D seismic technology has enhanced the imaging of these types of reservoirs.

Overall, the deepwater industry is predicted to continue its growth trend, reaching an annual total of over $26B by 2012, consequently, expenditure in this sector is expected to expand. Amidst this positive outlook for the deepwater exploration and production processes, challenges remain in the issues of sourcing out experienced personnel in deepwater drilling projects and supply shortages of drilling rigs and installation vessels.

Deepwater fields are those sited in water depths greater than 500m.