Global oil and gas Capital Expenditure (CAPEX) market has been projected to hit $797.58 billion by the end of 2023.
Oil majors including Shell, TotalEnergies, Chevron and ExxonMobil are mentioned in a new market research report titled “Oil and Gas CAPEX Market Report (2023-2028)’, as 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 utilised by a company/organisation 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 USD 41.96 per barrel, and in 2022, the prices reached more than USD 110 per barrel, resulting in a surge in investment in the oil & gas industry.
The CAPEX market is expected to witness noteworthy growth owing to factors such as strong profitability due to a trend toward reducing project costs and optimising portfolios, leading to divesting of low-margin fields, as well as a greater emphasis on investments in higher-margin growth opportunities.
