Overall global upstream investments in 2020 will decrease by around 4% with investments in shale/tight oil expected to contract the most, by almost 12%, said Rystad Energy.
Rystad believes that the lower oil price and weaker cash flows will force shale companies to reduce activity. Deepwater is the only segment expected to grow above 5% next year, spelling a boom for the industry.
On a regional level, only Africa, Russia, and South America are expected to see growth or flat development in investments next year, with key players like Mozambique, Libya, and Mauritania pushing the largest continent’s growth to the highest worldwide at 11%.
Unsurprisingly, Brazil, thanks to Marlim and Mero projects, will likely prop up South America to a predicted growth of almost 6% next year. Investments in the Middle East and Australia also are expected to grow on the back of new LNG projects and the redevelopment of old oil fields.
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