Vessel demand report
The France-headquartered OECD (Organisation for Economic Co-operation and Development) has published a new report on shipbuilding and the offshore energy industry.
The report finds that cutbacks in investment in oil exploration, due to low prices, will likely mean a drop in offshore vessel deliveries, which had become a key market segment for the shipbuilding industry. Deliveries are expected to fall at least 10% in 2015, with further decreases likely in 2016 and 2017 likely to hit shipbuilding companies around the world.
In the medium to long term, growth in demand for all offshore vessel types should remain firm, thanks to the development of deep offshore oil fields. Offshore renewables, and notably offshore wind installations and floating plants, also hold promise, even if they remain small compared to oil and gas.
The report discusses overall risks to shipyards from the offshore sector, including complex construction processes, strict regulations, high levels of investment and the absence of a level playing field in the market.
The OECD describes itself as an International organisation helping governments tackle the economic, social and governance challenges of a globalised economy.
The full report is available at www.oecd.org/sti/ind/Shipbuilding-and-offshore-industry.pdf
By Jake Frith
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