Offshore

Offshore:
The Dutch offshore sector has been operating in a difficult market for several years. The sector is faced with low energy prices (oil and gas), declining exploration in the North Sea and price pressure in both the oil and gas market and the market for renewable energy (construction of wind farms). The year 2019 is described by the IRO in its annual report as a year in which cautious optimism around investments in oil, gas and wind, but also the capture of CO2 and recycling of drilling platforms, was combined with the impact of unexpected events such as a further fall in the oil price. The spot price of a barrel of crude oil (Brent) fluctuated between USD 59 and USD 71 per barrel in 2019 with an annual average of USD 64. This is lower than a year earlier (2018: average USD 71). Exploration of new gas fields in the North Sea remains a challenge due to the lack of an announced investment deduction. A look at the figures shows that there has been a minimal decrease in turnover in the sector (2019: € ​​10.03 billion). The added value has decreased by approximately € 150 million and now (2019) amounts to € 3.5 billion (decrease of 4%). The sector is in a transition in which activities in the field of renewables are becoming increasingly important. Offshore wind in particular is an important growth market for the Dutch offshore sector. Although this market is characterized by a volatile character and pressure on margins (to be able to construct parks as cheaply as possible), the market is interesting for the sector due to the long-term horizon. In 2019 there were wind turbines in the sea with a total capacity of approximately 1 gigawatt (GW). In 2023 there will be at least 4.5 GW of power for offshore wind turbines

Impact COVID-19 on the Offshore Industry:
The corona crisis is also having a major impact on the offshore sector, the figures for 2020 will be significantly different. The sharp fall in the oil price as a result of the drop in demand (which saw negative prices on the spot market for the first time in history) will have an impact on the sector. Order books are slowly becoming empty and investments in (fossil) energy are being postponed or adjusted. The wind energy sector will continue as usual. The sector also had to deal with practical limitations during maintenance and installation of wind farms.