BAKU, Azerbaijan, Dec.22
By Leman Zeynalova - Trend:
İtalian Saipem company expects the highest reduction in capital expenditures in exploration and production activities by 2040, Trend reports with reference to “2021 SHAPING A NET-ZERO FUTURE" issued on Saipem website.
“The industry scenarios analysis highlighted that, up to 2040: revised outlook in the E&P segment drives increasing pressure especially on Drilling segment expectations, both offshore and onshore. The upstream oil and gas sector has struggled in recent years and COVID-19 has even worsened the situation. The impact on E&P spending will also be driven by capital allocation to sustain new emissions objectives; E&P oil capex outlook, already foreseen to decrease in the pre-COVID scenario, is expected to be further reduced compared to previous scenarios, only partly sustained by the need to replace depleting reserves; E&P gas capex, growing in pre-COVID scenarios, today is expected to be only marginally reduced compared to the previous assessments; midstream gas capex long-term trend is confirmed, compared to pre-COVID expectations and on average remains stable across the different scenarios, providing available and sufficient transport infrastructure (including LNG) to sustain growth in gas demand,” Saipem said.
Saipem notes that other reference sectors are set to remain broadly in line or to improve versus pre-COVID outlooks.
“As the role of Oil&Gas is declining going forward, counterbalanced by renewables, two technology breakthroughs are forecasted as increasingly important to accelerate the energy transition: CCUS (Carbon Capture Utilisation and Storage) and Green Hydrogen. From a broader perspective, with different configurations and rates over time, all scenarios highlighted the common emergence of a global long-term mega-trend, accelerating the pace of the energy transition and pushing the need for global infrastructure, boosted also by COVID-19 stimulus packages,” the company said.
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