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Over 142bn will be spent on upcoming oil and gas fields in North America to 2025

Publication Date: 11 May 2018 - By Gaurav Sharma (Editor ReachX) By Gaurav Sharma (Editor ReachX)
Actionable
Differentiated

Thematic Macro Commodity USA Energy

Over $142bn will be spent on 97 upcoming oil and gas fields in North America between 2018 and 2025, according a new report by research and analytics outfit GlobalData.

Capital expenditure (capex) into North America’s conventional oil and gas projects will add up to $91bn and $2.9bn, respectively over the eight-year period, with $82.6bn of capex contribution from the offshore fields.

Oil sands projects will require $43bn, while the investments into heavy oil assets will require almost $4bn in upstream capex by 2025, GlobalData noted.

The US accounts for $76bn or over 53% of $142bn of capex for the period of 2018 to 2025. The country has 39 announced and planned fields, 9 are onshore fields in Alaska and the remaining 29 are in offshore United States. Among these, top fields in terms of capex for the period are Mad Dog Phase 2 with $13.4bn, Smith Bay with $11.1bn and Horseshoe with $6.5bn.

Canada follows with $46bn or approximately 32% share in North America’s planned and announced capex over 2018 and 2025. Canada has 19 planned and announced fields. Three Onshore fields Telephone Lake (Cenovus Energy Inc.), Kearl Oil Sands Project Phase 3 (Imperial Oil Limited) and Kearl Oil Sands Project Phase 4 Debottleneck (Imperial Oil Limited) are the top three fields with capex for the eight-year period of $6.3bn, $5.9bn and $3.3bn, respectively. All three are oil sands developments.

Mexico is expected to contribute $20.9bn or approximately 15% to the total capex spending between 2018 and 2025 and has 40 planned and announced fields. The top three fields are Exploratus, Nobilis-Maximino ultra-deepwater conventional oil fields and Trion conventional oil deepwater field with capex of $1.3bn, $3.2bn and $5.3bn, respectively.

GlobalData expects that over their lifetime, the 97 upcoming oil and gas projects will require $234bn in capex to produce over 19,636 million barrels of crude and 9,530 billion cubic feet of gas. Upcoming onshore projects in North America will have the highest total capex at $97.1bn. Ultra-deepwater projects will require $61.7bn over the lifetime, while deepwater and shallow water projects carry a total capex of $38.3bn and $36.4bn, respectively.

 

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