Oil, natural gas sector project approvals seen tripling in 2019 -Rystad Energy
By Robert Perkins / Platts
Petroleumworld 02 22 2019
Final investment decisions (FIDs) on conventional oil and gas projects could almost triple this year as operators play catch up on delayed spending, a wave of new LNG projects move forward and Saudi Arabia greenlights major offshore projects, according to research by Rystad Energy.
Excluding spending on shale and tight oil and gas prospects, collective FIDs were expected to unlock more than 46 billion barrels of oil equivalent in 2019, the Norwegian research group said.
Years of tough capital discipline by operators, lower industry costs and firmer prices are fueling an uptick in upstream spending after billions of dollars in projects were shelved in the wake of the 2014 oil price collapse.
Most of the new planned projects are giant, capital-intensive LNG plants with multi-billion boe developments such as Mozambique LNG and the Russian Arctic.
LNG expansions in Qatar and Papua New Guinea are also eyeing FIDs, while those for deepwater oil off Brazil, Guyana, and Norway are also on the cards.
"The only supply segment likely to shrink this year is the oil sands, whereas deepwater, offshore shelf and other conventional onshore developments are all poised to show substantial growth," Rystad upstream research analyst Readul Islam said in a statement.
Saudi Arabia was also expected to approve three major offshore shelf expansion projects that would collectively account for nearly a fifth of global FID volumes this year, Islam said.
He said, however, there were downside risks to the FID forecast, noting that potential delays to just a few mega-projects expected in 2019 could significantly affect total volumes approved.
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