Global oil and gas CAPEX outlook: 8.4% growth to 2025

The oil and gas CAPEX is expected to grow at a CAGR of more than 8.4% during the forecast period.

Factors, such as strong profitability following a trend to reduce project costs and optimise portfolios, which has led to divestment of low-margin fields, and increased focus on investment in higher-margin growth opportunities, are expected to increase the CAPEX during the forecast period.

Moreover, LNG-oriented gas projects are witnessing increased investment, as it is a less carbon-intensive fuel and helps in the transition to a lower carbon economy. However, volatile crude oil and natural gas prices, coupled with slow economic growth at a global level, are expected to restrain the oil and gas CAPEX during the forecast period.

The upstream sector is expected to be the largest segment, which would have the highest CAPEX, as several region's state-owned firms are prioritising domestic oil and gas projects to improve energy security and reduce their dependence on imports.

Several greenfield projects, along with deepwater and ultra-deepwater exploration in African countries such as Senegal and Mauritania, possess ample opportunity for increased capital expenditure.

Asia-Pacific has recorded the highest gains in CAPEX and is likely to be the fastest-growing region, owing to operations of globally integrated majors along with national oil companies and new investments during the forecast period.

The global oil and gas CAPEX market is moderately fragmented. Some of the key players are BP PLC, Exxon Mobil Corporation, Total SA, Chevron Corporation, and Royal Dutch Shell PLC.

Read the article online at: https://www.worldpipelines.com/business-news/02122020/global-oil-and-gas-capex-outlook-84-growth-to-2025/