April 23, 2018
According to GlobalData, over US$142 billion will be spent on 97 upcoming oil and gas fields between 2018 and 2025.
Capital expenditure (capex) into North America’s conventional oil and gas projects will add up to $91 billion and $2.9 billion, respectively over the eight-year period, with $82.6 billion of capex contributing from the offshore fields.
Oil sands projects will require $43 billion, while the investments into heavy oil assets will require almost $4 billion in upstream capex by 2025.
The US accounts for $76 billion or over 76 per cent of $142 billion of capex for the period of 2018 to 2025. The country has 39 announced and planned fields, nine are onshore fields in Alaska and the remaining 29 are in offshore United States. Among these, top fields in terms of capex for the period are Mad Dog Phase 2 with $13.4 billion, Smith Bay with $11.1 billion and Horseshoe with $6.5 billion.
Canada follows with $46 billion or approximately 32 per cent share in North America’s planned and announced capex over 2018 and 2025. Canada has 19 planned and announced fields. Three Onshore fields Telephone Lake (Cenovus Energy Inc.), Kearl Oil Sands Project Phase 3 (Imperial Oil Limited) and Kearl Oil Sands Project Phase 4 Debottleneck (Imperial Oil Limited) are the top three fields with capex for the eight-year period of $6.3 billion, $5.9 billion and $3.3 billion, respectively.
All three are oil sands developments.
Mexico is expected to contribute $20.9 billion or approximately 15 per cent to the total capex spending between 2018 and 2025 and has 40 planned and announced fields. The top three fields are Exploratus, Nobilis-Maximino ultra-deepwater conventional oil fields and Trion conventional oil deepwater field with capex of $1.3 billion, $3.2 billion and $5.3 billion, respectively.
GlobalData expects that over their lifetime, the 97 upcoming oil and gas projects will require $234 billion in capex to produce over 19,636 million barrels of crude and 9,530 billion cubic feet of gas. Upcoming onshore projects in North America will have the highest total capex at $97.1 billion. Ultra-deepwater projects will require $61.7 billion over the lifetime, while deepwater and shallow water projects carry a total capex of $38.3 billion and $36.4 billion, respectively.
(all numbers are in U.S. funds)