Global oil and gas investment is set to rise by 20% this year, according to Rystad Energy, with growth driven by soaring oil prices and big money flowing into projects in Brazil, Guyana, West Africa and Australia, the Houston Chronicle reports.
Earlier this year, Rystad had forecast 8% growth for 2022; however, with Brent consistently topping $110 and WTI flirting with the same levels, we are now witnessing the highest growth rate forecasts since 2008.
In the United States, investment in shale is set to increase by 35%, with the Permian basin leading the way, Rystad said, while investment in deepwater offshore drilling is set to rise by 30%.
Globally, the biggest uptick in investment is coming from places like Guyana, where ExxonMobil has witnessed a string of major discoveries over the past seven years. This year alone, Exxon, with partners Hess and CNOOC, has made five oil discoveries in the Stabroek Block offshore Guyana, now updating resources to nearly 11 billion barrels.
In Brazil, last week, Norwegian oil giant Equinor and Exxon made concrete moves to expand an $8-billion offshore project, Reuters reported, in the Bacalhau oilfield, which contains more than 1 billion barrels of oil. The next phase of the project will include a gas pipeline that is more than 100 miles long.
Earlier this month, Rystad said production in the Permian Delaware Basin would hit a record 5.7 million barrels of oil equivalent (boepd) this year, thanks to high oil prices and solid economics, with total production on track to increase by some 990,000 boepd.
Rystad also said that investments in the basin would increase 40% in 2022, over 2021, despite the fact that supermajors cut their investments in the Permian Delaware Basin last in 2020 by over 30%.
By Charles Kennedy for Oilprice.com
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