Investments from global exploration and production companies (E&P) in 2021 are projected to reach around $380bn, almost flat y-o-y, Rystad Energy report
According to the report, investments may rebound to the pre-crisis level of $530bn by 2023 if oil prices rise to around $65 per barrel.
About 20% or US$76bn of the estimated 2021 investments could be at risk of deferral or reduction, with the remaining amount being categorized in the safer tiers of low and medium-range risk
The amount is our base case scenario, but with 2020’s market turbulence fresh in mind and the currently uncertain roll-out timing of the recently announced COVID-19 vaccines, it’s worth expanding the forecast to a range of $350bn to $430bn, incorporating some scenario deviation.
Investments may rebound to the pre-crisis level of $530bn by 2023 if oil prices rise to around US$65 per barrel
source: independent
