BAKU, Azerbaijan, Dec.13
By Leman Zeynalova – Trend:
Lower oil price and weaker cash flows will force shale companies to reduce activity, Trend reports with reference to Rystad Energy, headquartered in London.
The company is forecasting that overall global upstream investments in 2020 will decrease by around 4 percent.
“Investments in shale/tight oil are expected to contract the most next year by almost 12 percent. Deepwater is the only segment expected to grow above 5 percent next year, spelling a boom for the industry,” Rystad Energy said in its forecasts.
On a regional level, only Africa, Russia and South America are expected to see growth or flat development in investments next year, with key players like Mozambique, Libya and Mauritania pushing the largest continent’s growth to the highest worldwide at 11 percent, reads the report.
“Unsurprisingly Brazil, thanks to the Marlim and Mero projects, will likely prop South America up to a predicted almost 6 percent of growth next year. Investments in the Middle East and Australia are also expected to grow on the back of new liquefied natural gas (LNG) projects and the redevelopment of old oil fields.”
Rystad Energy is an independent energy research and business intelligence company providing data, tools, analytics and consultancy services to the global energy industry. Rystad Energy is headquartered in Oslo, Norway with offices in London, New York, Houston, Stavanger, Aberdeen, Moscow, Rio de Janeiro, Singapore, Bangalore, Tokyo, Sydney and Dubai.
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