More than 31,690 miles of pipeline are forecast to be installed over the next five years, with the North American and Western European offshore set to dominate the market, according to a study released Friday by Douglas-Westwood Ltd. The UK-based analysts said North America and Western Europe will account for more than 40% of pipe building between 2003-2007.

In the third edition of “The World Offshore Pipelines and Umbilicals Report 2003-2007,” lead author Dominic Harbinson said the upswing in pipeline installations represents an increase of 42% over the previous five-year period. “We estimate that these installations — which include flowlines, risers, export systems and trunk lines — will require a global capital expenditure (capex) of $54.4 billion,” he said.

“Capex off Western Europe is forecast at $10.8 billion, while off North America it could top $11.5 billion,d riven almost entirely by activity in the U.S. Gulf of Mexico,” said Harbinson. He noted that activity off of Africa’s and Asia’s coasts also is expected to grow “strongly.”

The 229-page report also forecasts a total of about 6,500 miles of umbilical installations through 2007, representing a potential 22% increase over the period between 1998-2002. Global capex in the umbilical sector in the next four years is forecast at just over $2.6 billion, up 53% on the $1.7 billion spent in the previous four years. Western Europe is expected to maintain its position as the leading umbilical market, spending more than $863 million, followed by North America, with an estimated capex of almost $700 million.

“The underlying driver for activity in the offshore pipeline and umbilicals sectors is the growth in global energy demand,” said Dr. Roger Knight, Infield Systems data manager for Douglas-Westwood. In addition, he said, “there are four marked trends within the offshore sector that can be expected to contribute strongly to growth in the…sectors,” include the increased uptake of subsea production technology; the industry’s move into deepwaters; the growth in long-instance natural gas transmission projects; and the establishment of long-distance power and communications links to offshore facilities.

The report provides an overview of the various stages of the project process in the pipe and umbilical sectors, ranging from route selection and design through production, installation, operations and decommissioning. In both global and regional contexts, the report examines historic, planned and possible activity in the sectors between 1998-2007 period in both global and regional contexts. A series of case studies are presented as well.

For more information, contact Douglas-Westwood at admin@dw-1.com, or visit the web site at www.dw-1.com.

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