Latin America a key driver in global upstream oil and gas investments: Rystad Energy
Latin America, along with the Middle East and North Sea, is set to be a pivotal region for the next wave of global upstream oil and gas investments, according to Rystad Energy. The study underlines a significant surge in these investments worldwide, with global upstream expenditure expected to reach around US$570 billion this year, an increase of US$140 billion from 2022 levels.
Audun Martinsen, Head of Supply Chain Research at Rystad Energy, highlighted that this surge in investments is merely the first wave, fuelled by countries seeking reliable, affordable, and sustainable energy sources. As the energy transition advances, with a keen focus on low-carbon power, the momentum will likely accelerate, necessitating supply chain expansion in national and regional markets.
Despite an initial forecast in early 2022 estimating global upstream investments to reach US$470 billion by the end of the year, the unexpected conflict between
The war drastically reshaped Rystad Energy’s outlook. The imposition of sanctions on energy exports, coupled with escalating energy prices and inflation, sparked a disruptive ripple effect across global energy markets. As a result, the revised estimation jumped US$100 billion over the initial forecast.
Notably, the value and utilisation of oilfield services, primarily in North America and the Middle East, are reaching record levels and are predicted to remain tight for the foreseeable future. However, the most significant offshore market growth is anticipated to come from Latin America, the Middle East, and the North Sea. Increased offshore activity in these regions necessitates a surge in vessels, rigs, construction, and subsea infrastructure.
Latin America is also expected to play a crucial role in the burgeoning offshore wind market, which, along with carbon capture, utilisation, and storage (CCUS), is projected to constitute nearly half of all offshore investments by 2030.