Offshore Energy Outlook
Executive Summary
Energy produced offshore is a significant component of global oil and natural gas supply and could become an increasingly important source of renewable electricity. Resources are vast, but offshore projects must demonstrate their viability in a dynamic market and policy environment, amid various pressures on the world's oceans.
- Current Production: Over a quarter of today's oil and gas supply is produced offshore, primarily in the Middle East, the North Sea, Brazil, the Gulf of Mexico, and the Caspian Sea.
- Oil Production: Offshore oil production has remained relatively stable since 2000.
- Natural Gas Output: Natural gas production from offshore fields has increased by more than 50% since 2000.
- Electricity Generation: Offshore electricity generation, mainly from wind, has grown rapidly, particularly in the shallow coastal waters of Europe's North Sea.
- Challenges: The 2010 Deepwater Horizon accident in the Gulf of Mexico significantly impacted the offshore hydrocarbons industry. Additionally, the shale revolution and lower prices have affected offshore oil and gas prospects.
Purpose and Scope
This report aims to examine the full spectrum of offshore energy issues, including oil, gas, and renewable energy production, electricity markets, energy efficiency, and environmental considerations. It focuses on how offshore energy production is evolving and may develop in various scenarios.
Offshore Energy Today
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Oil and Natural Gas:
- Current Status: Over 25% of oil and gas supply is produced offshore.
- Stability: Offshore oil production has remained relatively stable since 2000.
- Growth: Natural gas production from offshore fields has increased by more than 50% since 2000.
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Electricity:
- Growth: Offshore electricity generation, primarily from wind, has increased rapidly, especially in the shallow coastal waters of Europe's North Sea.
Outlook for Offshore Energy to 2040
- Broad Energy and Policy Context: The report provides a comprehensive view of the current and future landscape of offshore energy.
- Offshore Costs: Costs for new projects are decreasing, but many developments still face significant market, policy, and technological uncertainties.
- Investment and Supply Chains: The report details the investment outlook and supply chains for both oil and gas and electricity production.
Key Findings
- Investment in Offshore Oil and Gas: Investment trends and factors affecting the outlook.
- Investment in Offshore Electricity: Trends and factors affecting the investment in offshore wind and other renewable energy sources.
- Factors Affecting the Investment Outlook: Market, policy, and technological uncertainties.
- Potential for Offshore Energy Integration and Synergies: Opportunities for integrating and synergizing different energy sources and supply chains.
Synergies
- North Sea: Significant potential for synergies and integration in the North Sea region.
- Other Regions: Potential for synergies in other regions with similar conditions.
Conclusion
Offshore energy activity holds promise for the future, despite ongoing changes in the market and policy environment. Governments and industry need to focus on innovation, high standards of safety and environmental performance, and integrated thinking across various supply chains and infrastructure.
Acknowledgements
The study was prepared by the World Energy Outlook (WEO) team in the Directorate of Sustainability, Technology, and Outlooks (STO). Contributions came from various experts and organizations, including the Research Council of Norway, Natural Resources Canada, and multiple international energy experts.