More than $811 billion will be spent on 615 upcoming oil and gas fields between 2018 and 2025 according to data and analytics company GlobalData.
Globally, capital expenditure (capex) into conventional oil, heavy oil, oil sands, and unconventional oil projects would add up to $352 billion, $44 billion, $43.4 billion, and $30 billion respectively over the eight-year period.
Conventional gas projects will require $363.2 billion, while the investments into coal bed methane (CBM) and unconventional gas projects will total $3.7 billion and $1.6 billion in upstream capital expenditure by 2025, according to GlobalData.
Brazil accounts for $76.7 billion, or more than 9.5 percent of $811 billion of capex for the period of 2018 — 2025. Brazil has 49 announced and planned fields. Among these, top fields in terms of capex for the period are three ultra-deepwater conventional oil fields: Lula Central with $13.3 billion; Lula Oeste with $6.5 billion; and Buzios V (Franco) with $5.6 billion.
The U.S follows with $75 billion or an approximate 9.3 percent share in global planned and announced capex over the forecast period. The country has 37 planned and announced fields. Ultra-deepwater Mad Dog Phase 2, shallow-water Smith Bay and onshore Horseshoe are the top three fields with capex for the eight-year period of $13.4 billion, $11.1 billion, and $6.5 billion, respectively. All three are conventional oil developments.
Russia is expected to contribute $72.6 billion or about 9 percent to the total capex spending between 2018 — 2025. Russia has 49 planned and announced fields. The top three fields are Sakhalin 3 shallow water conventional gas field with capex of $11.3 billion, Kovyktinskoye conventional gas onshore project with a capex of $9 billion, and Chayandinskoye conventional gas onshore project with $5.9 billion.
Nigeria, Australia, Canada, Mozambique, Norway, Indonesia, and UK, together have a capex $298 billion, or about 37 percent of the total capex spending on upcoming projects globally for the period.
GlobalData expects that over their lifetime, the 615 upcoming oil and gas projects will require $170.5 billion in capex to produce more than 88 billion barrels of crude and 877,448 billion feet of gas. Globally, upcoming shallow water projects will have the highest total capex at $497 billion. Onshore projects will require $453 billion over the lifetime, while ultra-deepwater and deepwater projects carry a total capex of $429 billion and $325 billion, respectively.
Many upcoming unconventional oil and gas projects represent new acreage developments within existing or newly acquired positions, and as such are covered under producing projects capital expenditure overview.
(this article was first reported by LNG Industry)