Global oil and gas investment is expected to grow by $26 billion this year. This is as the industry continues to recover from the worst of the coronavirus. All of this is according to a new analysis from Rystad Energy.
Overall oil and gas investment is forecast to climb by 4% to $628 billion this year. It is a high jump from $602 billion in 2021.
“The pervasive spread of the Omicron variant will inevitably lead to restrictions. This is specifically on movement in the first quarter of 2022. Capping energy demand and recovery in the major crude-consuming sectors of road transport and aviation. But despite the ongoing disruptions caused by Covid-19, the outlook for the global oil and gas market is promising”. This was said by Rystad’s Audun Martinsen, head of energy service research.
Natural gas and liquefied natural gas (LNG) investment is seen leading the way, rising 14% in 2022 to $149 billion from $131 billion in 2021. Although still short of pre-pandemic totals, Rystad sees investment in the LNG and gas segment surpassing 2019 levels of $168 billion in only two years, reaching $171 billion in 2024.
Upstream oil investments, meanwhile, are projected to rise from $287 billion in 2021 to $307 billion this year, a 7% increase, while midstream and downstream investments are projected to fall by 6.7% to $172 billion.
Source: Natural Gas Intelligence
If you have further questions about the topic, feel free to contact us here.