OGF Article Oil and Gas Projects Worth $110 Billion are Coming Off the Back Burner

Readul Islam, Rystad Energy


The oil and gas industry has vastly accelerated the pace of approving investments for new projects over the past 18 months. New facilities worth more than $110 billion have been approved for development since the beginning of 2017, versus only $50 billion in 2016. In May there were three major approvals: Total’s Zinia deepwater development off Angola, Cheniere’s LNG liquefaction Train 3 project at Corpus Christi, Texas, and the Santos-led Arcadia coalbed methane project in Queensland, Australia, feeding the Gladstone LNG export facilities. Momentum was maintained last week as the Norwegian parliament approved the development of Equinor’s Johan Castberg field development project in the Barents Sea, which will potentially add more than $40 billion in revenues to the Norwegian economy during the course of its production life. Higher oil prices, an improved outlook for gas demand, and lower offshore development costs are driving this rebound in the industry.