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Offshore spending outlook: capex projections for oil, gas, and wind energy
Join Matthew Hale of Rystad Energy on Oct. 2 as he dives into the surging offshore market with insights on escalating capital expenditures across oil, gas, and wind energy sectors. Register here.
Investments in the offshore sector are on the rise and are seen growing about 5% both this year and next, according to a recent report by Espen Erlingsen, Rystad Energy's head of upstream research.
Offshore, especially the deepwater sector, was heavily affected by the growth of tight oil in the last decade. Total upstream offshore investments fell from $340 billion in 2014 to $140 billion in 2021, following which they began to rise again. The combination of high oil prices, improved economics for offshore project and lower tight oil growth were the key drivers for this development.
Erlingsen estimates total offshore investments will reach almost $250 billion next year, meaning the offshore sector will most likely be the source that will drive the growth in oil production for the rest of this decade.
Earlier this month, Rystad also reported that global expenditure on subsea facilities is set for a 10% compound annual growth rate from 2024 to 2027. The consultants project a total capex spend for the period of more than $42 billion.
