The O&G industry is expected to resume spending at a rate of about 6% per annum over 2020 to 2025, after capes was slashed by 43% over 2014 to 2016. Although this rate of increase is still less than the 12% per annum in 2010 to 2014, Singapore yards are still expected to benefit, as they are exposed to both the exploration and production segments of the upstream oil and gas industry.
SINGAPORE (Jan 21): The offshore and marine (O&M) sector is kept at “market weight” by UOB Kay Hian, as analysis by the research house on the global oil and gas (O&G) sector and the global rig market indicated that while there have been some positive developments, a new rig-building upcycle is some years away due to the excess supply of such assets.
In a Monday report, analyst Adrian Loh says, “Given recent order wins, we see the offshore wind sector presenting opportunities while the electric vehicle (EV) sector does not yet present a threat to oil demand.”
