Lower oil prices expected to drive down E&P spending this year

摘要

That is the opinion of Norwegian consultancy Rystad Energy,which is forecasting that the lower energy prices caused by COVID-19 will drive down E&P spending this year from the $60B seen in 2019,with E&P spending in the US shale sector expected to be the most impacted.The consultancy said,”Lower oil prices will result in oil and gas companies scaling down their flexible investment budgets,especially shale operators in the US as well as some offshore exploration and production players.Our current assessment forecasts mat COVID-19 could result in global investments falling by around $30B in 2020,a significant hit to the industry.”Analyst James West of Evercore ISI also noted,”Amid the vast uncertainties right now,all that we do know is that WTI below $47 is a dangerous place to be...as that’s the average price where most E&Ps would reduce their budgets.”