The rising tide of approval activity has carried with it an increase in offshore investments in 2019. (Image source: haymarketrebel\/Flickr)<\/p>\n
This trend was perhaps illustrated most profoundly by the rising swell of offshore project approval activity by operators in 2019, he said.<\/p>\n
Globally, the amount of oil and gas resources approved for development last year surpassed 20bn boe, the highest level seen since 2011.<\/p>\n
A quick look at free cash flow (FCF) levels in recent years confirms that 2019 was a strong year for the offshore sector. The total offshore FCF from all public E&P companies globally. This shows that 2019 was the third-best year on record, with FCF reaching nearly US$90bn.<\/p>\n
This represented a slight reduction compared to 2018 but compares very favourably with the previous investment cycle from 2010 to 2014.<\/p>\n
This shows that the cash flow situation for offshore players is very robust, underlining the point that E&Ps have enough cash in hand to invest in new projects after several years of restrained capital expenditure.<\/p>\n
The rising tide of approval activity has carried with it an increase in offshore investments in 2019. Total offshore capex grew by five per cent versus 2018, with a seven per cent rise in deepwater spending and a three per cent boost in investments on the continental shelf.<\/p>\n
For 2020, offshore investments are on track to grow eight per cent, with deepwater up 12 per cent and shelf spending up to two per cent. This illustrates that a new offshore investment cycle is in the making.<\/p>\n
<\/p>\n
Excerpt from: <\/p>\n
New offshore investment cycle is in the making: Rystad Energy - Oil Review Middle East<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The rising tide of approval activity has carried with it an increase in offshore investments in 2019. (Image source: haymarketrebel\/Flickr) This trend was perhaps illustrated most profoundly by the rising swell of offshore project approval activity by operators in 2019, he said Continue reading