Oslo - In the oilfield service sector, the subsea market is on the rise. Subsea equipment and SURF – subsea, umbilicals, risers, and flowlines – are the best-performing segments, with growth rates exceeding 10% on a yearly basis in the second quarter of 2019, writes Rystad Energy, a Norwegian consultancy, in its latest report.
With the only exception of the land drilling segment, almost all segments in the oilfield service sector showed gains on a quarterly basis in the second quarter of 2019. The decline in land drilling is driven by decreased revenues in the United States where the drilling activity is slowing down. Industry players see increased oil price uncertainty and E&P spending cuts underlying the slowdown.
This is the second quarter, reminds Rystad, with positive year-on-year growth, following several years of decline, signalling improved market conditions. “We expect 2019 to be the first year with subsea revenue growth since 2014.”