Upstream spending: Rising costs and expanding investment horizons
The Global Upstream Spending Report provides a comprehensive overview of expenditure trends and key insights in the oil and gas industry. Focused primarily on upstream spending, this report offers valuable information about the investment landscape and upcoming trends in the sector.
1. Onshore and Offshore Capex: The latest findings reveal a strong recovery in offshore capital expenditure (capex) after the industry's downturn in 2018-2020. Predictions indicate that offshore capex will surpass previous historical highs and reach $220.9 billion in 2024. This growth signifies a renewed emphasis on maintaining and expanding production levels, as well as a growing appetite for exploration. Onshore capex is also projected to grow, particularly driven by unconventional activity, which is expected to witness a significant rise of 27% in 2023.
2. Exploration and Production (E&P) Outlook: According to the report, the E&P sector is witnessing a considerable increase in investment. The global E&P capex outlook has been revised upwards, indicating a meaningful boost in spending over the coming years. The forecast suggests a 12% increase in spending for 2023, followed by 6% and 8% increases in 2024.
Please contact James Blanchard (james.blanchard@spglobal.com) if you have further questions about this report.
This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.