BAKU, Azerbaijan, Jan.12
By Leman Zeynalova - Trend:
Global oil and gas investments are expected to rise by 4 percent in 2022 or by $26 billion from $602 billion in 2021, Trend reports with reference to Rystad Energy.
The company believes that this will be triggered by protracted recovery of industry from the worst of the pandemic and the hurdles imposed by the Omicron variant.
“A significant factor behind the increase is a 14 percent increase in upstream gas and LNG investments. These segments will be the fastest-growing this year, with a jump in investments from $131 billion in 2021 to around $149 billion in 2022. Although this falls short of pre-pandemic totals, investments in the sector are expected to surpass 2019 levels of $168 billion in just two years, reaching $171 billion in 2024,” reads a report released by Rystad Energy.
Upstream oil investments are projected to rise from $287 billion in 2021 to $307 billion this year, a 7 percent increase, while midstream and downstream investments will fall by 6.7 percent to $172 billion this year, according to the company’s forecasts.
“This year’s investment growth is very much pre-programmed by the $150 billion worth of greenfield projects sanctioned in 2021, up from $80 billion in 2020. Sanctioning activity in 2022 is likely to closely match 2021 levels, with a similar amount of project spending to be unleashed over the short to medium term,” says Rystad Energy.
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