As the world’s energy demand continues to increase, hydrocarbons like oil and natural gas will remain a key component of global energy policies. There are a couple different long-term scenarios affecting demand for hydrocarbons that largely depend on the adoption of alternative energy sources.
Long term fiber telecom system growth in the offshore energy sector hinges on how fast or slow alternative energy sources are adopted. However, short-term outlook remains strong – largely due to increased oil exploration efforts to fuel both energy independence policies and developing nations seeking to industrialize.
Growth in this sector is ultimately tied to the price of hydrocarbons. Over the last 30 years oil prices continue to trend slightly upwards, despite the two major price crashes in the last 10 years. Natural gas has remained stable, trending slightly downwards.
Post-crash, the recovery of the offshore energy market has led to an increase in platform construction activity. With a revitalized oil market, new exploration efforts and desire for increased automation and data processing will drive demand for new submarine fiber systems.
There is expected to be over $2.6 billion worth of investment in offshore oil & gas submarine fiber systems over the next several years with most of this growth happening in just three regions.
Three main cable suppliers, four main installers and three main surveyors serve the offshore energy sector. All of these companies have valuable experience specific to offshore energy telecoms and will handle most projects moving forward.