Global upstream spending is slated by the IEA to rise by 5% to $472bn this year on the back of 2017’s modest 4% increase – though this followed a cumulative fall of near 50% for 2015 and 2016.
The projected 2018 upstream spend of $472bn in the IEA’s freshly-released World Energy Investment 2018 report remains almost 40% down on the 2014 peak (see chart). But whether this presages output shortfalls in the years to come remains to be seen: certainly majors and IOCs claim that they are now getting more bang for their buck with their collective investment emphasis having shifted from multi-decade megaprojects to US shale and relatively straightforward near-field tie-ins, both on and offshore. (CONTINUED - 1727 WORDS)
