While offshore oil drilling has been increasing slowly in recent years, research firm Rystad Energy expects increased new spending over the next two years. Energy companies were previously hesitant to commit to expensive new projects that could take years to pay back. But with demand for oil and gas rising after the pandemic, some companies are now looking for projects that can offer reliable production over the long term. According to Rystad Energy, the offshore oil and gas industry has $214 billion in new project investment over the next two years, the highest two-year total in a decade. In fact, this would mark the first time since 2012-2013 that companies have spent this much to develop offshore projects. According to Rystad, “offshore activity is expected to account for 68% of all approved conventional hydrocarbons in 2023 and 2024, up from 40% between 2015-2018.” Middle Eastern producers will be responsible for most of the growth, however, there are projects from several continents. For example, UK offshore spending is expected to rise 30% to $7 billion this year, while spending on Norwegian projects could rise 22% to $21 billion, according to Rystad. Additionally, North America, Brazil and Guyana are all seeing growth.
Finsum:According to research firm Rystad Energy, new spending for offshore oil drilling is expected to increase over the next two years as companies look for projects that can offer reliable production over the long term to keep up with rising demand for oil and gas.
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