Global capital expenditure (capex) in the oil and gas markets is expected to hit $797.58 billion before the end of this year, recent industry report has said.
The Oil and Gas CAPEX Market Report (2023-2028 says oil majors including Shell, TotalEnergies and ExxonMobil are key drivers of the market.
The report estimates the market at $797.58 billion in 2023 and is expected to register a Compound Annual Growth Rate, CAGR of 4.27 per cent during the forecast period.
Capital expenditure (CAPEX) refers to the funds utilized by a company/organization to acquire, upgrade, and maintain physical assets, such as property, plants, buildings, technology, or equipment. It is often used to undertake new projects or investments by a company. The global oil and gas CAPEX market considers the entire capital expenditure of international oil and gas operators annually.
The report mentioned that the Chadian oil and gas market is expected to register a CAGR of more than 0.54 per cent during the forecast period, while the Chinese oil and gas midstream market is expected to witness a CAGR of more than 3.04 per cent during the forecast period.
Investment in the upstream oil and gas industry grew after the rise in oil and gas demand amid the opening of the COVID-19 lockdowns.
An expansion in demand recovered crude oil prices in 2022, while in 2020, crude oil prices were about $41.96 per barrel, and in 2022, the prices reached more than $110 per barrel, resulting in a surge in investment in the oil & gas industry.