Oil and gas upstream capex is at the highest level for a decade, according to the report. (Image source: Adobe Stock)

Oil and gas annual upstream capital expenditures rose by US$63bn year-on-year in 2023 and are expected to rise a further US$26bn in 2024, surpassing US$600bn for the first time in a decade, according to a new report from the International Energy Forum (IEF) and S&P Global Commodity Insights

More than 60% of the increase in upstream capex spent between now and 2030 will come from the Americas, according to the Upstream Oil and Gas Investment Outlook report. While the USA and Canada are expected to be the largest drivers of capex growth to 2030, Latin America plays an increasingly significant role in non-OPEC supply growth, particularly for conventional crude, with large expansions in Brazil and Guyana.

Continued upstream investment is still needed to both offset expected production declines and to meet future demand growth, the report highlights, forecasting that a cumulative US$4.3 trillion in new investments will be needed between 2025 and 2030. Annual upstream investment must increase by US$135bn or 22% to reach US$738bn by 2030, based on an outlook that sees demand for oil rising from 103mn bpd in 2023 to nearly 110mn bpd by 2030.

“This investment is vital for supporting energy security and enabling an orderly and equitable energy transition,” the report says. “The past two years have shown the negative impacts of disorderly transitions, such as price shocks, shortages, and a rise in geopolitical tensions.”

Oil demand will plateau, rather than peak and collapse, and could actually remain above 100mn bpd to 2050. However, there is a lot of uncertainty around the demand trajectory and the pace of the energy transition, creating a difficult environment for making investment decisions. Markets need to remain agile and adaptable to changing conditions.

"More investment in new oil and gas supply is needed to meet growing demand and maintain energy market stability, which is the foundation of global economic and social wellbeing," said Joseph McMonigle, secretary general of the IEF. "Well-supplied and stable energy markets are critical to making progress on climate, because the alternative is high prices and volatility, which undermines public support for the transition."

The contract includes Weatherford’s full suite of drilling technologies along with its Centro well construction optimisation platform. (Image source; Adobe Stock)

Weatherford has been awarded a new five-year contract with Bahrain’s Bapco Upstream, a subsidiary of Bapco Energies, to deliver directional drilling and logging while drilling services

The contract, which follows on from the drilling services contract that Weatherford was awarded in 2015, includes Weatherford’s full suite of drilling technologies along with its Centro well construction optimisation platform for high-quality reservoir-characterisation data. This end-to-end solution seamlessly integrates all well data for advanced multi-domain viewing and real time analytics of operations, facilitating collaboration, enhanced transparency, and advanced agility to maximise efficiencies for Bapco Energies while maintaining a cost-effective operation.

Girish Saligram, Weatherford President and CEO, commented, “I am pleased Bapco Energies selected Weatherford as it continues to advance its drilling programme. Weatherford has performed drilling services in Bahrain since 2016, and this award reaffirms our partnership and further showcases the value of our comprehensive drilling portfolio and cutting-edge digital capabilities.”

The signing of the agreement. (Image source: QatarEnergy)

QatarEnergy has signed an LNG supply agreement with CPC Corporation, Taiwan (CPC) for the delivery of four million tons per annum (MPA) of LNG from the North Field East (NFE) project for 27 years

QatarEnergy will also transfer to CPC a 5% share in the equivalent of one NFE train with a capacity of eight MTPA, making CPC a partner in the NFE project.

His Excellency Minister Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, president and CEO of QatarEnergy, said, “We look forward to further enhancing our relationship with CPC, which extends for over three decades, and to further demonstrate our unwavering commitment to our customers and partners around the world.”

Shun-Chin Lee, chairman of CPC Corporation, Taiwan, said, “QatarEnergy, the world’s leading LNG player, has been playing an important role in ensuring Taiwan’s domestic gas market over the past decades. CPC’s acquired equity in the NFE project and this new LNG SPA will further strengthen the cooperative relationship between our two companies.”

The NFE project is part of the North Field LNG expansion programme which will raise Qatar’s LNG production capacity from the current 77 MTPA to 142 MTPA in 2030.

See also https://oilreviewmiddleeast.com/exploration-production/qatarenergy-announces-new-lng-expansion-project

https://oilreviewmiddleeast.com/exploration-production/qatarenergy-signs-lng-supply-agreement-with-eni

https://oilreviewmiddleeast.com/exploration-production/qatarenergy-signs-lng-supply-agreements-with-totalenergies

. The winch is designed to support a wide range of oceanographic equipment and marine instrumentation. (Image source: Adobe Stock)

Okeanus Science & Technology has launched a new all-hydraulic Stackable Winch

The ruggedised compact 3 HP winch, which is supported by a 28’ x 12’ x 18’ drum and 0.450’ cable, is capable of a variable line speed of 100 ft/min and a line pull maximum of 700 lbs. Constructed primarily of Aluminum 6061-T6 and with its multi-coat marine grade coating, the winch can withstand harsh offshore operating conditions with full adherence to ABS standards. The “stackable” design feature allows for the optimisation of space on smaller vessels. The winch is designed to support a wide range of oceanographic equipment and marine instrumentation, including towed side-scan and magnetometer systems, water samplers, CTDs, and various other oceanographic winch operations.

“We are thrilled to launch the first model in our new line of compact, lightweight Stackable Winches,” said Okeanus chief operating officer Don Brockett. “This new product line has been designed to offer offshore operators an intuitive, easy-to-maintain, and affordable option for survey vessels with limited available deck space, with the option to deploy up to three winches at the same time in a stacked formation.”