LONDON (Reuters) – The number of new oil and gas projects will rise five-fold next year from a 2015 trough but overall spending is still unlikely to be enough to meet future demand, consultancy Wood Mackenzie said in a report. Shaken by a sharp drop in oil prices in recent months, boards are generally expected to stick to spending discipline imposed following the 2014 price crash. Global investment in oil and gas production, known as upstream, is expected to reach around $425 billion next year, according to WoodMac analyst Angus Rodger. That compares with a total spending of $770 billion in 2014, which dropped to $400 billion in 2016 and 2017. Although spending levels have slightly recovered since then, next year’s capital expenditure will still fall short of the $600 billion required to meet demand growth and to offset the natural decline of output from fields, Rodger told Reuters. Oil and gas spending: tmsnrt.rs/2QRy7fY A handful of the world’s top oil companies, including U.S. giants Exxon Mobil and Chevron, said they would boost spending next year as they accelerate developments of highly-productive shale fields. But overall, companies will seek to maintain spending largely flat in order to return cash to investors… continue reading
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