Rystad traces better times in oil service

International sales in the Norwegian oil supply industry amounted to NOK 100 billion in 2017, reports a report that Rystad Energy has made for the Ministry of Petroleum and Energy.

This was less than 132 billion crowns in 2016.

The total turnover for the industry amounted to NOK 340 billion in 2017, after a decrease of ten percent compared to the previous year.

The share of international sales fell from about 35 percent in 2016 to 29 percent in 2017. This is lower since 2003.

With a market share of 24 percent, subsea equipment and installation remained the largest product segment, although sales fell from 30 to 24 billion.

Drivers were important geographical markets such as the UK, Brazil, Angola and the United States, where Aker Solutions, FMC and DOF made important contributions.

Follow lighter times

However, Rystad Energy expects a better future for Norwegian suppliers of the oil industry in 2020.

"Worldwide oil purchases in the offshore oil and gas industry are expected to drop by 5.0 percent in 2018, before strong growth is expected in 2020, 6.0 percent in 2019 and 11.0 percent in 2020. Seismic and maintenance services were the only two segments of offshore E & P procurement (exploration / production) with growth in 2017, according to the report.

"We expect other segments to follow in 2018/19, driven by improved cash flow, higher oil prices and a new investment cycle for offshore, and the net order intake in 2017 for Norwegian suppliers has risen by 52 percent compared to 2016. mention.

According to the analysts, this indicates that the lowest level of sales can be reached in 2017.

"All in all, this hopes for a better global market, as well as development for the Norwegian suppliers industry internationally over the coming years, although you can hardly expect to return to the levels in 2014/15, writes Rystad Energy.

A happy minister of state

Oil and energy minister Kjell-Børge Freiberg is encouraged.

– 100 billion international sales is a high figure in a year with a demanding market situation. I'm glad we see more signs that it looks rosier in the future. In 2018, Norwegian suppliers won large contracts in Brazil and China. At the same time, a lot is happening at home, as an activity in Norway's largest industrial project, Johan Sverdrup, he says in a comment.

The whole report here.

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