• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 3 hours Shale Oil Fiasco
  • 2 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 4 mins Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 4 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 2 hours Might be Time for NG Producers to Find New Career
  • 1 day China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 22 hours Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 1 day Wind Turbine Blades Not Recyclable
  • 1 day Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 3 hours US Shale: Technology
  • 5 hours Indonesia Stands Up to China. Will Japan Help?
  • 1 day Denmark gets 47% of its electricity from wind in 2019
Alt Text

Goldman: China Coronavirus Could Push Oil Down By $3

The outbreak of a coronavirus…

Alt Text

China Finds Oil In Asia’s Deepest Onshore Well

China National Petroleum Corporation (CNPC)…

Alt Text

China’s Cheap Electric Vehicles Could Disrupt Global Markets

China’s legion of electric vehicle…

Nick Cunningham

Nick Cunningham

Nick Cunningham is an independent journalist, covering oil and gas, energy and environmental policy, and international politics. He is based in Portland, Oregon. 

More Info

Premium Content

Oil Industry Boosts Spending… But There’s A Catch

Oil prices have seesawed over the past few years, still far below the pre-2014 highs, but upstream spending is expected to continue to rise in the years ahead, according to a new report from Morgan Stanley. .vemba-player-sticky{ min-width: 800px; z-index: 100000; }

“Global upstream capex — more muted growth, but still a positive trajectory from here,” the investment bank wrote in a note to clients. Spending should rise by 6 percent CAGR through 2022, Morgan Stanley said, which is down from its prior estimate of 8 percent, largely because of the recent downturn in oil prices.

Between 2019 and 2022, global upstream spending rises from $461 billion to $554 billion. That comes after several years in which spending hovered at around $450 billion. It should be noted, however, that spending will not reach the 2014 peak of well over $700 billion for the foreseeable future, if ever.

Crucially, there is an “inflection point” where oil spending rises and falls. Morgan Stanley says that oil needs to trade above $50 per barrel for WTI and $60 per barrel for Brent for the industry to steadily ratchet up spending. Anything below that level and the expected spending increases go out the window.

In fact, the investment bank says that the oil industry would see a 20 percent decrease in cash flow if Brent averaged $50 rather…




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play