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Global Oil and Gas Capital Expenditure Outlook - 2010: National Oil Companies (NOCs) to Drive Invest
Global Oil and Gas Capital Expenditure Outlook - 2010: National Oil Companies (NOCs) to Drive Invest
Overall Oil & Gas Capex Will Increase In 2010 Driven By NOCs’ Investments
Hyderabad,
AP,
India
(prbd.net)
27/01/2010
"Global Oil and Gas Capital Expenditure Outlook - 2010"
Volatile commodity prices, larger stocking of oil and unstable demand made companies cautious with their investment plans in 2009. We estimate global oil and gas spending will be down around 18% in 2009 versus 2008 after rising around 26% in 2008 versus 2007. The capital expenditure plans for 2009 are noticeably different in terms of the scope and strategy adopted by the large companies. Even the ambitious investment plans are accompanied with cost-cutting measures. Also, uncommitted investment plans are being reviewed and revised in expectation of a better deal in terms of lower raw material prices and service rates. Furthermore, the companies are reluctant to invest; in mature basins which typically have higher costs, in regions with high geo-political risk and in countries with unstable fiscal regimes.
The capital expenditure of oil and gas companies, witnessed a significant decrease in 2009, after the surge in 2007–08. However, in 2010 capex activity is expected to rise, driven mainly by large National Oil Companies (NOCs). GlobalData forecasts a 12% growth in the oil and gas sector capital expenditure in 2010 and expects the total capex of the leading listed oil and gas companies to exceed $798 billion, driven mainly by the investments of NOCs. The total capital expenditure by the listed NOCs (for which data is publicly available) is expected to register a 16% growth to around $375 billion in 2010.
The crude oil price has recovered by 57% to around $75 per barrel from $45 per barrel in January 2009. Currently crude oil and natural gas are trading at around $82 per barrel and $5.7 per Mcf. The global economic environment and the short and long term outlook for commodity prices play a vital role in the capital expenditure plans of exploration and production companies. With the major economies showing some signs of recovery in the second half of 2009, global economic conditions are expected to improve in 2010. Emerging economies such as India and China will be the key growth drivers for the global resurgence.
GlobalData’s new report “Global Oil and Gas Capital Expenditure Outlook - 2010 National Oil Companies (NOCs) to Drive Investment” provides in-depth analysis and insights into oil and gas sector capital expenditure outlook for 2010. The report presents detailed Information and analysis of capital expenditure in oil and gas segments; Upstream and Midstream. It also provides detailed information on capital expenditure across various regions; North America, South and Central America, Europe, Middle East & Africa and Asia-Pacific. The report also covers the planned oil and gas projects in upstream, refining, pipeline, LNG and petrochemical projects.
A drop of over $100 per barrel in oil prices late last year; bringing it to around $32 per barrel, prompted many national oil companies, which depend on oil for most of their revenue, to cut spending, delay and cancel oil and gas projects. However, most NOCs have the necessary financial strength to fund their capital-intensive projects and they continued to spend during the ongoing economic downturn. The capital expenditure of oil and gas companies witnessed a significant decrease in 2009 after the surge in 2007–08. However, in 2010 capex activity is expected to rise, driven mainly by large National Oil Companies (NOCs). GlobalData forecasts a 12% growth in the oil and gas sector capital expenditure in 2010 and expects the total capex of the leading listed oil and gas companies to exceed $798 billion, driven mainly by the investments of NOCs. The total capital expenditure by the listed NOCs (for which data is publicly available) is expected to register a 16% growth to around $375 billion in 2010.
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