Oil and Gas Capex Outlook - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
The oil and gas CAPEX market size was around USD USD 502 billion in 2020, and it is anticipated to reach around USD 942 billion in 2027, registering a CAGR of around 8.1% during the forecast period 2022-2027. On account of the COVID-19 pandemic, key oil and gas players like Saudi Aramco, Exxon Mobil, and Shell PLC announced a decrease in spending from USD 175 billion to USD 38 billion in 2020. The decrease in spending was primarily due to the collapse of crude oil prices globally. Factors, such as strong profitability following a trend to lower project costs and optimize portfolios, which has led to divestment of low-margin fields, and increased focus on investment in higher-margin growth opportunities, are expected to increase the CAPEX during the forecast period. Moreover, LNG-oriented gas projects are witnessing increased investment, as it is a less carbon-intensive fuel and helps in the transition to a lower-carbon economy. However, volatile crude oil and natural gas prices, coupled with slow economic growth at a global level, are expected to restrain the oil and gas CAPEX during the forecast period.
Key HighlightsThe global oil and gas CAPEX market is moderately fragmented. Some of the key players include BP PLC, Exxon Mobil Corporation, TotalEnergies SE, Chevron Corporation, and Shell PLC.
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