After last year’s lowest spending on new field developments in 30 years, the offshore oil and gas sector is set to significantly increase capital expenditures this year to around US$44 billion, according to Westwood Global Energy Group.

Offshore upstream oil and gas spending is expected to surge to around US$44 billion this year, compared to just US$12.3 billion worth of engineering, procurement, and construction (EPC) contracts awarded in 2020. In 2019, before the pandemic hit oil demand and prices, the EPC contracts in the offshore oil and gas industry were around US$40 billion.

“In 2021, we will see a significant uptick in activity,” Thom Payne, Head of Offshore at Westwood Global Energy Group said at Riviera Maritime Media’s Annual Offshore Support Journal virtual conference and exhibition on Wednesday.

Most of this year’s capital expenditure and the biggest EPC contracts will go to major natural gas projects offshore Australia and deepwater oil project developments offshore South America.

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Source: Oil Price

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