Global oil and gas industry capital expenditure in 2011 rising 16%.
With the decline in availability of crude oil and natural gas from onshore fields, costlier technology will be required to produce oil and gas from deep/ultra-deep offshore areas and unconventional sources such as oil and gas shales, oil sands and coal bed methane. It is estimated that in 2011, the global oil and gas industry will witness a total capital spend of $928 billion.
Most oil and gas companies are undertaking construction of developing capital intensive, upstream, midstream and downstream projects. National Oil companies and integrated oil companies will be key spenders, contributing 85% to the global oil and gas capex in 2011. The positive demand outlook is encouraging most integrated oil and gas companies to increase their capital spending. The capex growth is also driven by high refining margins of above $10 per barrel.
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|Publication:||Pipeline & Gas Journal|
|Article Type:||Brief article|
|Date:||Nov 1, 2011|
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