Wood Mackenzie forecasts the investment cycle will show the first signs of growth since 2014 in 2017, and final investment decisions (FIDs) will double compared with 2016.
According to Wood Mackenzie's global upstream outlook for 2017, confidence will start to return to the sector, with exploration and production spend set to rise by 3 percent to $450 billion. Though a corner is being turned, this is still 40-percent below the heady days of 2014. At the forefront of the revival will be U.S. tight oil. Costs will continue to fall in 2017, though only marginally. But for all the pain of the downturn, a leaner industry is starting to emerge.
The key themes of Wood Mackenzie's "Global Upstream: 5 things to look for in 2017" report are:
- The global investment will rise, reversing two years of severe decline.
- FIDs will double and deepwater is back on the agenda.
- Costs will bottom out as an efficiency boom takes hold, but more work is required.
- Fiscal rules need to improve to attract scarce investment.
For more information, visit www.Woodmac.com or call (713) 470-3725.
