Oil and gas not going anywhere: Rystad
LNG and upstream gas investments are said to push up global oil and gas investments by US$26 billion to reach a value of $628 billion in 2022.
A report released from Norwegian firm Rystad Energy has outlined Australia as a potential key region of interest as investment growth within the sector is predicted to rise by 33% as the greenfield gas developments begin to come online.
The Middle East is said to join Australia in leading growth with investments forecast to expand by 22%.
A 4% growth in both the oil and gas sectors are predicted in 2022.
Rystad highlights a forecast for upstream and LNG investments to go from $131 billion in 2021 to $149 billion in 2022, which will still fall short of pre-pandemic levels but demonstrates a steady recovery.
The firm also notes some 80 offshore projects globally are reading to be approved in 2022. Those projects total $85 billion worth of value.
“The pervasive spread of the Omicron variant will inevitably lead to restrictions on movement in the first quarter of 2022, capping energy demand and recovery in the major crude-consuming sectors of road transport and aviation. Despite the ongoing disruptions caused by Covid-19, the outlook for the global oil and gas market is promising, “said Rystad head of energy research Audun Marinsen.