OSLO, Norway – While the oilfield service market in shale is the place to be in 2017, there is clear evidence that offshore projects are still being prioritized by E&P companies, according to analyst Rystad Energy.
For every dollar that is invested into the North American shale market in 2017, the analyst firm says, a dollar is also earmarked for the development of new offshore resources. Both sources of future production, shale and offshore, will receive around $70 billion each of planned capex.
In both 2014 and 2015, E&P companies looked at North America and the shale industry for where they would invest in new production capacity. In 2014, $160 billion was invested into drilling and completion of wells and $20 billion on infrastructure, while only $95 billion was committed to unlock new offshore resources. For 2015, 40% more was directed toward shale. Both 2014 and 2015 were the result of offshore projects pricing themselves out of the competition of providing oil to the market.
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