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bp discloses average annual investment needed in upstream oil & gas

Oil&Gas Materials 14 March 2022 14:04 (UTC +04:00)
bp discloses average annual investment needed in upstream oil & gas
Laman Zeynalova
Laman Zeynalova
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BAKU, Azerbaijan, March 14

By Leman Zeynalova – Trend:

The average annual investment in upstream oil and gas over the next 10 years is around $375-$500 billion, compared with around $415 billion in 2020, Trend reports with reference to bp’s Energy Outlook 2022.

“The investment levels implied by the expansion of carbon capture, use and storage (CCUS) facilities in the three scenarios (including the cost of capture, transport and storage) is relatively small compared to that required by either wind and solar capacity or upstream oil and gas. However, it is much greater than recent historical levels, suggesting that a significant scaling-up in financing would be required to support the build out,” bp said in its latest report.

The company says that estimates of the investment paths implied by different scenarios are uncertain since they depend on a number of factors affecting the cost of energy investments over the next 30 years, including the cost of key materials, technology trends and the cost and availability of capital.

“The central role that wind and solar power play in the provision of increasingly low-carbon electricity in Accelerated and Net Zero imply a material acceleration in investment in new capacity. Despite the falling cost of wind and solar capacity, the average annual investment consistent with these two scenarios over the outlook is $500-$800 billion. This is two to three times greater than recent investment levels, with around 65-70% of that implied investment occurring in emerging economies. This significant increase in the pace of investment in wind and solar power would need to be supported by corresponding investment increases in critical enabling technologies and infrastructure, including transmission and distribution capacity,” the report says.

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