Upstream capex rising on higher crude prices

摘要

Spending by upstream firms around the globe has been on the rise this year due to higher oil and gas prices according to James West, an Evercore ISI analyst. Mr. West says North American upstream firms will increase spending the most this year, jumping by about 14%. Evercore adds that US upstream capex will rise by 16% this year, with the Permian basin shale play being the main driver of growth in upstream spending not only in North America but the world. The Permian is now home to over 20% of all the active rigs on the globe, and no region has shown comparable growth. According to Baker Hughes GE, Permian drilling activity has more than doubled since the start of 2016.