Westwood’s analysis of 3 E&P peer groups – the five Supermajors, four selected National Oil Companies (“NOCs”) and 17 selected US Shale producers, suggests that 2021 capital expenditures are likely to remain relatively flat or decrease slightly compared to 2020, at a US$50/bbl Brent (US$45/bbl WTI) oil price assumption.
After a turbulent 2020 for the oil and gas industry, 2021 is expected to see a modest rise in investment in the UK and Norway offshore sectors, assuming a US$50 per barrel average oil price. Exploration activity could recover to 2019 levels and investment in new developments is set to increase.
With the Energy Transition gaining pace, several Exploration and Production (“E&P”) companies have adjusted their business models; both to reduce emissions and to mitigate climate-related business risks.
This oil and gas, potentially, worth more than $65 bn and costing an estimated $24bn to discover, represents 40% of the volume found in high impact discoveries in the period. Where is this resource located? Why is it stranded and how big an opportunity does it represent?
This report reviews high impact discoveries made between 2008-2016 in 30 countries, which have neither been sanctioned for development nor had any appraisal activity since 2016.
Video on demand for Westwood's October 2020 webinar on the Macro Outlook on crude supply/demand, E&P behaviour/s, upstream M&A and the summary outlook for our core business areas.