A new study by IHS reveals that capital spending on oil and gas midstream and downstream infrastructure increased 60% between 2010 and 2013. The firm expects that trend to continue through the end of the decade, with an annual capital expenditure greater than $80 billion invested between 2014 and 2020. Capital investment in infrastructure is expected to taper off after 2020, decreasing to just under $60 billion per year by 2025. IHS attributed the capital spending surge to the recent boom in domestic oil and gas production, noting that infrastructure investments are no longer being made under the assumption that domestic production will decrease, resulting in greater reliance on foreign imports.
The results of the study were unveiled Tuesday during API President Jack Gerard’s “State of American Speech” presentation in Washington, D.C.