Shipbuilding Orders to Surge on Energy Demand

According to a May 17 report from Bloomberg, Daewoo Shipbuilding & Marine Engineering Co., the world’s second-largest shipyard by orders, aims to almost triple contracts for offshore facilities this year. The company may win $5b worth of orders for drilling rigs and floating production facilities this year, compared with $1.8b last year, Executive Vice President Brendan Jeong said. Hyundai Heavy Industries Co. and Samsung Heavy Industries Co. have also predicted a jump in offshore orders this year, undeterred by an oil-rig leak triggering a drilling ban in the Gulf of Mexico. Oil companies including Royal Dutch Shell Plc and Petroleo Brasileiro SA are still pushing ahead with projects near Australia and Brazil because global fuel demand is expected to rise as much as 18 percent during the next decade, according to Robert Fryklund, vice president of industry relations at energy-consultant IHS Inc.