press release

E&P 2020 Forecast: Deepwater bucking the trend

December 13, 2019
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Rystad Energy is forecasting that overall global upstream investments in 2020 will decrease by around 4%. Investments in shale/tight oil are expected to contract the most next year by almost 12%. Rystad Energy believes that the lower oil price and weaker cash flows will force shale companies to reduce activity. Deepwater is the only segment expected to grow above 5% next year, spelling a boom for the industry. 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%. Unsurprisingly Brazil, thanks to the Marlim and Mero projects, will likely prop South America up to a predicted almost 6% of growth next year. Investments in the Middle East and Australia are also expected to grow on the back of new LNG projects and the redevelopment of old oil fields.

Global investments by supply segment billion USD Supply segment group 2020 2019 offshore deepwater offshore shelf oil sands shale tight oil other onshore 2012 2014 2016 2018 2020 2022 Rystad Energy UCube December 2019

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Contacts

Espen Erlingsen
Head of Upstream Research
Phone: +47 24 00 42 00
espen.erlingsen@rystadenergy.com

Morten Bertelsen
Vice President, Media Relations
Phone: +47 24 00 42 00
morten.bertelsen@rystadenergy.com

 

About Rystad Energy

Rystad Energy is an independent energy research and business intelligence company providing data, tools, analytics and consultancy services to the global energy industry. Our products and services cover energy fundamentals and the global and regional upstream, oilfield services and renewable energy industries, tailored to analysts, managers and executives alike. 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.