Potential investment value increase in oil and gas sector

Potential investment value increase in oil and gas sector
The global energy industry remains buoyant despite an overall reduction in new projects, the latest EIC monitor report has indicated.
The number of new projects announced in the second quarter of 2012 was 401, compared to 471 in the first quarter.
However the upstream sector has seen an increase of 55% in the potential investment value of new projects, now totalling US$50 billion. This is despite the overall number of new projects in the sector decreasing by 34 per cent.
The Ukraine and Russia together account for two-thirds of the total potential upstream investment value between them. The largest project announced is the proposed Skif Shale Gas Project in theUkraine which could see investment of up to US$12 billion.
In the downstream sector, the number of new quarterly projects has dropped by 7% since Q1 2012, with a 47% increase in the total potential investment value from US$43 billion in Q1 2012 to US$63 billion in Q2 2012.
Most proposed new projects still need to gain consent and finances, so a proportion will not go ahead.
Dr Phil Goddard, head of EIC consult, said: “Overall, the picture shows that the industry as a whole is holding steady.”