IEF says oil, gas production investments increased 9 percent last year
BAKU – The amount of total capital spending made globally on oil and gas upstream projects is expected to have risen by 9 percent in 2010 after falling 15 percent in 2009, Bloomberg reported according to the International Energy Forum.
Capital spending to add more upstream capacity started to improve last year after cutbacks, although "the challenge facing the industry is to continue to take the long term view and invest in the oil and gas value chain despite the many uncertainties," the Riyadh-based forum known as IEF said in a paper posted on its website today.
According to IEF estimates, cumulative oil project investment required meet energy demand between 2010 and 2035 is $8.1 trillion, or $310 billion per year, with 85 percent of this amount to be directed to the upstream. The gas sector needs $7.1 trillion, or $270 billion per year over the period, it said.
"Mobilising this huge level of investment is a major challenge for the oil and gas industry," the IEF said.
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