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GlobalData: gas projects lead in capital expenditure in oil and gas industry, outspending oil projects by 4.1%

With the global oil and gas industry comfortable with the lower for longer oil price environment, 620 oil and gas projects are slated to come online in the near to mid-term globally, according to GlobalData, a leading data and analytics company.

Of these, 267 projects have progressed past the final investment decision, while the remaining are early stage announced projects undergoing commercial feasibility studies.

Among global upcoming projects, Africa leads with the highest total capital expenditure (capex), US$380.1 billion attributed to 91 projects. Noticeably, Asia which is in fifth position in terms of total capex for upcoming projects, US$169.8 billion, is the leading region globally for the number of new projects with 129.

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This incongruity in project count versus capex spend is supported on an asset level. Africa has three offshore conventional gas to LNG projects, all in Mozambique, in the top 10 capex spend for planned projects globally accounting for 34% of capex spent in the group. Asia has one project in Indonesia contributing 9% of capex spend in the same grouping.

Though Asia leads globally in the number of new oil and gas projects, 83% of these are onshore and shallow water with half of those projects in India. This aligns with India’s aggressive efforts to increase domestic oil and gas supply.

—Effuah Alleyne, Oil & Gas Analyst at GlobalData

132 new oil and gas projects globally are expected to commence production by end of 2018. South America leads the groups with 28 projects estimated to commence production in 2018 with an accompanying total capex of US$28.3 billion.

Oceania, through its series of conventional gas and coal bed methane (CBM) projects starting production in 2018, leads in capex spend with US$63.2 billion over the lifetime of 7 projects recovering 4,033 million barrels of oil equivalent (mmboe) of reserves.

More than US$59 billion is anticipated to be spent in the African region across 21 onshore and shallow water projects coming online in 2018 and recovering 2,376 mmboe of reserves over their lifetime.

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