Prospects for recovery in the market for offshore oil and gas helicopter support market are gathering pace, although it may take more time for this to be reflected in improved profit margins for operators. This was the main conclusion of independent market analysis presented at the Vertical Flight Expo event on November 5 by Steve Robertson, director of the Air & Sea Analytics consultancy. His presentation largely matched that of a panel discussion earlier in the day at the same Farnborough, UK event.
“The near-term outlook is that there will be continued growth in the offshore oil and gas sector from now until around 2024,” Robertson said. “Higher oil prices will eventually lead to better commercial terms of helicopter operators, but for now it remains a very competitive market as [oil and gas] companies remain very cautious [about costs] due to price volatility.”
According to data collected by Air & Sea Analytics, in the 24-month period between August 2017 and 2019, the number of aircraft flying in the offshore oil and gas sector increased by 18 percent, with an additional 31 aircraft being added to the fleet. Beyond more mature markets like the North Sea and Gulf of Mexico, the company sees demand for helicopter service rising fastest in places such as Guyana, Suriname, Senegal, the eastern Mediterranean Sea, southern and east Africa, and Asia.
The company's data also shows Europe-based NHV moving up from eighth to fifth place in the ranks of offshore helicopter operators. Bristow Group remains in the top spot, followed by CHC, PHI and Babcock International.