- Upstream sector is expected to be the largest segment which would have the highest CAPEX, as the several region’s state-owned firms are prioritising domestic oil and gas projects to improve energy security and reduce their dependence on imports.
- Several greenfield projects, along with deepwater and ultra-deepwater exploration in African countries such as Senegal and Mauritania, possess ample opportunity for increased capital expenditure.
- Asia-Pacific has recorded the highest gains in CAPEX and is likely to be the fastest growing region, owing to operations of global integrated majors along with national oil company’s and new investments during the forecast period.
Upstream Sector to Dominate the Market
- After the downturn in the oil and gas industry, as crude oil prices increased, upstream sector gained momentum and capex represented a gain of 5.5% y-o-y in 2019 and 7.2% in 2018. As number of oil and gas projects continue to increase, the upstream capex is also expected to increase during the forecast period.
- The upstream sector has almost 70% of the total capex allocated to the oil and gas sector and is expected to attract greater spending to fulfil the oil demand ensuring energy security. In 2019, IEA reported a CAPEX of USD 497 billion for upstream operations, with North America having the highest share.
- The number of Final Investment Decision (FID) for upstream sector was more than 60, which was greater than midstream and downstream sector combined. Several upstream projects such as Agogo Oil Discovery and Glaucus Gas Discovery in Middle-East and Africa region have attracted major players and is expected to increase in CAPEX during the forecast period.
- The United States is expected to lead oil-supply in the next six years, supported by shale industry which has led to transformation of the oil and gas industry, from nothing in 2010 to 7 mb/day in 2019. The exploration and production activities in the United States has led to the country exporting more oil than Russia and overtaking Saudi Arabia in coming years. So, increased investment in shale industry is expected to drive the capex in the upstream sector.
- Hence, to meet the strong global demand for crude oil and natural gas, more investment is required for the exploration and production activities, which in turn is promulgating the CAPEX in the oil and gas industry.
- Asia-Pacific is expected to witness a significant growth in the oil and gas CAPEX in the coming years due to the recent discoveries in the offshore and onshore region, coupled with increasing energy demand from countries such as China and India.
- The capital spending in the oil and gas sector is expected to witness a growth of 7% y-o-y in 2020 which is the highest amongst all regions. Major oil and gas companies have increased their spending, led by Chinese state-owned companies, notably PetroChina and Sinopec. These companies have raised their spending on domestic oil and gas exploration and production and on maintenance programs for mature fields.
- India’s state owned ONGC is moving forward in domestic oil and gas which plans spend USD6.9bn in 2020, from USD3.7bn in 2019, to focus on development of assets in the Krishna-Godavari basin and new offshore, deepwater blocks that it acquired under the Open Acreage License Programme in 2019.
- Moreover, the energy consumption in Asia-Pacific is expected to grow by 48% over the next three decades. China and India have been largest consumers of oil & gas in the Asia-Pacific region, and pipeline network is growing in both of these countries. Hence, the CAPEX for oil and gas in the region is expected to increase during the forecast period.
The global oil and gas CAPEX market is moderately fragmented. Some of the key players are BP PLC, Exxon Mobil Corporation, Total SA, Chevron Corporation, and Royal Dutch Shell PLC.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format.
- 3 months of analyst support.
This report will be delivered within 2 business days.
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Global Oil and Gas Industry CAPEX in USD billion, till 2026
4.3 Global Crude Oil Production and Consumption Forecast, till 2026
4.4 Global Natural Gas Production and Consumption Forecast, till 2026
4.5 Global Installed Pipeline Capacity and Forecast in Kilometers, till 2026
4.6 Historical and Production Forecast of Tight Oil, Oil Sands, and Crude from Deepwater in mb/d, Until 2026
4.7 Recent Trends and Developments
4.8 Government Policies and Regulations
4.9 Market Dynamics
4.10 Supply Chain Analysis
4.11 Industry Attractiveness - Porter's Five Forces Analysis
4.11.1 Bargaining Power of Suppliers
4.11.2 Bargaining Power of Consumers
4.11.3 Threat of New Entrants
4.11.4 Threat of Substitutes Products and Services
4.11.5 Intensity of Competitive Rivalry
4.12 Analysis of the Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Sector
5.2 By Location
5.3 By Geography
5.3.1 North America
5.3.4 South America
5.3.5 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Key Company Profiles (Overview, Key Projects/Products and Services, Financials*, and Recent Developments)
6.3.1 BP PLC
6.3.2 Royal Dutch Shell PLC
6.3.3 Eni SpA
6.3.4 Chevron Corporation
6.3.5 Total SA
6.3.6 Exxon Mobil Corporation
6.3.7 Equinor ASA
6.3.8 Marathon Petroleum Corp.
6.3.9 Phillips 66
6.3.10 National Petroleum Company (ENAP)
6.3.11 Petróleo Brasileiro SA (Petrobras)
6.3.12 Enbridge Inc.
6.3.13 Oil and Natural Gas Corporation (ONGC)
6.3.14 China National Petroleum Corporation (CNPC)
6.3.15 Saudi Aramco
6.3.16 Abu Dhabi National Oil Company
6.3.17 NK Lukoil PAO
6.3.18 China Petroleum & Chemical Corporation (Sinopec)
6.3.19 Gazprom Neft PJSC
6.3.20 NK Rosneft' PAO
6.3.21 ENEOS Holdings Inc.
6.3.22 Petróleos Mexicanos (PEMEX)
6.3.23 Kuwait Petroleum Corporation
6.3.24 Petroliam Nasional Berhad (Petronas)
6.3.25 PT Pertamina
6.4 CAPEX Market Share Analysis of Oil and Gas Operators
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
*Subject to Availability on the Public Domain
A selection of companies mentioned in this report includes:
- Abu Dhabi National Oil Company
- BP PLC
- Chevron Corporation
- China National Petroleum Corporation (CNPC)
- China Petroleum & Chemical Corporation (Sinopec)
- Enbridge Inc.
- ENEOS Holdings Inc.
- Eni SpA
- Equinor ASA
- Exxon Mobil Corporation
- Gazprom Neft PJSC
- Kuwait Petroleum Corporation
- Marathon Petroleum Corp.
- National Petroleum Company (ENAP)
- NK Lukoil PAO
- NK Rosneft' PAO
- Oil and Natural Gas Corporation (ONGC)
- Petroliam Nasional Berhad (Petronas)
- Petróleo Brasileiro SA (Petrobras)
- Petróleos Mexicanos (PEMEX)
- Phillips 66
- PT Pertamina
- Royal Dutch Shell PLC
- Saudi Aramco
- Total SA