Friday, January 13th, 2017 and is filed under Uncategorized
“2017 will demonstrate how efficient the oil and gas industry has become; showing projects in better shape all round,” said Malcolm Dickson, a principal analyst for Upstream Oil and Gas for Wood Mackenzie.
Dickson went on to say, “We’ve just come through two years of gloom and lots of costs cutting and now we are cautiously optimistic there will be a start of recovery in 2017.”
Companies, gaining confidence that the oil price slump is behind them, are set to increase spending and more than double new development projects in 2017.
The Oil & Gas Financial Journal reports:
Wood Mackenzie forecasts the investment cycle will show the first signs of growth in 2017 since 2014 and final investment decisions (FIDs) will double, compared with 2016.
Malcolm Dickson, a principal analyst for Upstream Oil and Gas for Wood Mackenzie, said: “2017 will demonstrate how efficient the oil and gas industry has become; showing projects in better shape all round.”
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% to US$450 billion. Though a corner is being turned, this is still 40% below the heady days of 2014. At the forefront of the revival will be US 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.
Read the full report at WoodMac: New projects in the upstream oil and gas industry to double in 2017.