A new report has found that the number of new oil and gas projects is expected to rise to five times that of a depression in 2015, although spending is not expected to be enough to meet future demand.
Although company boards are expected to stay in line with spending discipline following the 2014 price crash, global investment in oil and gas projects production is expected to rise marginally to $425 billion. This will still fall short of the required $600 billion needed to meet future demand.
A small number of top oil companies, including Exxon Mobil and Chevron, have stated their intend to boost spending next year as they look to speed up the developments of their shale fields.
The Wood Mackenzie report expects 50 new large oil and gas projects in 2019, compared to 40 last year and around 10 in 2015, with a number of these to be centred around gas.
The report said: “The stars are aligning on LNG sales contracts, corporate appetite, long-term demand and costs. But these are huge investments, and investor confidence could waver if we see signs of cost inflation, global recession and falling prices.”
Spending across the industry could increase further in 2020 with rising oil prices along with the increasing costs of rigs.