Global Oil & Gas Capital Expenditure Over $1 Trillion
LONDON, UK (GlobalData), 23 August 2012 - Increased activity in the Exploration and Production (E&P) sector will be the primary driver in pushing oil and gas capital expenditure (capex) to an enormous $1,039 billion for 2012, states the latest report by natural resources experts GlobalData.
The new report* predicts that the total oil and gas capex will increase by 13.4% this year over the 2011 total of $916 billion, as oil companies intensify upstream operations across locations as diverse as offshore Brazil, the Gulf of Mexico and the Arctic Circle.
SEE OTHER TOP STORIES IN THE ENERGY DIGITAL CONTENT NETWORK
Investor confidence in new upstream projects is being driven by the increasing number of oil and gas discoveries (242 last year alone), combined with consistently high oil prices and the arrival of new technologies that are giving the major firms access to deep offshore reserves that were previously technically and financially unviable.
North America is expected to witness the highest capex globally, with $254.3 billion, representing a share of 24.5% of the 2012 global total. Compared to a global average capex growth rate of 13.4%, North America is expected to witness a capex growth of 15.7%. The increase of unconventional oil and gas activities, especially the continuing exploitation ofshale oil and gas sites and the development of Canadian oil sands are the major drivers for these investments.
GlobalData predicts Asia-Pacific to follow very closely with a capex of $253.1 billion, while the Middle East and Africa are forecast to spend $229.6 billion.
National Oil Companies (NOCs) are expected to lead in terms of capex, contributing approximately half of the total, with Integrated Oil Companies (IOCs) and independents making up the remainder. NOCs including Petroliam Nasional Berhad, China Petroleum & Chemical Corporation and Petroleo Brasileiro S.A plan on substantially increasing their E&P spending this year.
In terms of capital expenditure for the 2012–2016 period, Petroleo Brasileiro S.A. ranks first globally amongst NOCs, whereas ExxonMobil Corporation is expected to be the number one IOC. Together, these two plan to undertake a massive oil and gas capex of $409 billion through to 2016.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.