Big Oil’s Next-Gen Oilfield Covers 2 Miles of Sea

Bloomberg reported that the oilfield of the future could be found 2 miles underwater as major oil companies are now investing more and more money to operate undersea. Spending on valves, cables, and pipelines for subsea use could reach up to $13.9B and equipment makers are positioned to gain from it.

As quoted in the market news:

The point now is to stretch the limits so you can put together a toolbox the way you need it,” Sorensen said. Operating more efficiently in ultra-deep water, with less maintenance and down-time from weather disruptions, can be worth billions to a company, said Martin Craighead, chief executive officer at Baker Hughes Inc. A 1 percent improvement in the oil recovery factor translates into $3.2 billion in the value of some projects, he said. It also carries high risk, as BP Plc’s oil spill at the deep-water Macondo well in the Gulf of Mexico demonstrated to the world in 2010.

Click here to read the full Bloomberg report.