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DVB: Only three percent offshore growth in 2014

Oil companies are cutting costs, and in 2014 the investment growth will decline from previously double-digit rates to between three and five percent, says DVB in an analysis.

The double-digit growth rates of recent years seen in oil companies' investments in exploration and production (E&P Capex) will not continue throughout 2014, says DVB in a new analysis of the offshore industry. Instead, offshore carriers will have to get used to a growth level of three to five percent, says the bank.

According to DVB, this development is caused by factors including expectations for lower oil prices compared to 2013, while increasing costs put pressure on revenues at oil and gas companies, several of which are already in the process of trimming their costs levels. Statoil has axed a large number of employees since the beginning of the year while also working to outsource jobs to countries that can perform the tasks at a lower price than Norway.

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