• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 16 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Does Toyota Know Something That We Don’t?
  • 5 days World could get rid of Putin and Russia but nobody is bold enough
  • 1 day America should go after China but it should be done in a wise way.
  • 7 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 8 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 7 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 8 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 9 days United States LNG Exports Reach Third Place
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Oil And Gas Industry Plans Capex Hike

Confidence is returning to the oil and gas industry, with a majority of respondents in a DNV GL survey saying that they plan to increase capital expenditure this year. The Norway-based energy industry advisory firm noted that while last year confidence in the growth prospects for oil and gas firms had stood at 32 percent of respondents, now it has gone up to 63 percent.

DNV polled 813 senior oil and gas executives, of which 36 percent said their companies would spend more on R&D and innovation this year. That’s the highest portion in the last four years, the consultancy noted.

Within R&D, energy companies will focus on digitization and cybersecurity—two areas that undoubtedly need urgent attention, especially since 22 percent of respondents placed competitive pressure at the top of the list that makes up the biggest barriers to growth this year. Next are reduced exploration and oil and gas oversupply, each with 19 percent, and operating costs, which 18 percent of respondents believe will be the main obstacle to growth.

Still, financial discipline seems to be the mainstay despite the challenges, or perhaps because of them. “A new optimism is now emerging, driven from a common understanding that cost levels are under control and operators can make reasonable margins from an oil price that is expected to stay lower for much longer. The winners in our industry this year are those who can continue to make a clear shift from an expansion mindset to a margin mindset, and recognize the importance of implementing new models and technologies to improve operational efficiency,” said the CEO of DNV Oil and Gas, Liv Hovem.

Half of the survey respondents said they will continue to tighten their cost controls this year, and almost two-thirds shared a belief that this new financial discipline is now a permanent facet of the industry. This, DNV notes, suggests that oil and gas is undergoing a sustainable change.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News