Global oil and gas capital expenditure (capex) will reach US$1,039bn for 2012 thanks to increased activity in the E&P sector, a report by GlobalData has forecast
The report has predicted that the total oil and gas capex will increase by 13.4 per cent this year over the 2011 total of US$916bn, as oil companies intensify upstream operations around the world.
GlobalData stated, “Investor confidence in new upstream projects is being driven by the increasing number of oil and gas discoveries, (242 last year alone), combined with consistently high oil prices and the arrival of new technologies that are giving the major firms access to deep offshore reserves that were previously technically and financially unviable.”
North America will see the highest expenditure globally with US$254.3bn set to be spent this year, which represents a 24.5 per cent share of the 2012 global total. Compared to a global average capex growth rate of 13.4 per cent, North America is expected to witness a capex growth of 15.7 per cent.
GlobalData added that, “The increase of unconventional oil and gas activities, especially the continuing exploitation of shale oil and gas sites and the development of Canadian oil sands, are the major drivers for these investments.”
The report has stated that Asia-Pacific would follow very closely behind the US with a capex of US$253.1bn, while the Middle East and Africa are forecast to spend US$229.6bn.
NOCs are expected to lead in terms of capex, contributing approximately half of the total, with IOCs and independents making up the remainder.
In terms of capital expenditure for the 2012–2016 period, the top global NOC spender will be Petroleo Brasileiro, whereas ExxonMobil Corporation is expected to be the number one IOC. Together these two companies plan to undertake a massive oil and gas capex of US$409bn through to 2016.
