The complete paper provides insight on the commercial drivers that significantly changed floating-production-system (FPS) design philosophy after 2014, with a particular focus on the US Gulf of Mexico (GOM). The paper explores near-term and longer-term outlooks for FPS design, touching on technology and automation that can relocate staff onshore to increase safety, reduce capital expenditure (CAPEX) and operating expenses (OPEX), and increase return on investment (ROI). The authors note that the commercial analyses presented in the paper are indicative and are subject to revision.
Introduction
The drastic fall of oil prices in late 2014 forced a harsh but necessary overhaul to the design philosophy of deepwater projects. Bigger was no longer better; the industry set to work using methods such as lean design and standardization for commercial improvement. Through a slow recovery in commodity prices and a steady persistence in innovating and implementing improvements, the deepwater sector made significant strides in commercial and operational efficiency.
This overhaul was a rough 4-year journey as investment capital, and even some operators, retreated from deep water for lower-cost and faster-cycle onshore projects—at least, that was the perception at the time. Deepwater projects were delayed or canceled, and the industry saw consolidation among operators and the service sector.
