Oil, Gas Executives Expect Spending Boost

The majority of senior energy industry executives expect to maintain or increase spending this year to meet demand for oil and gas after years of austerity, a survey by DNV GL shows.
DNV, a technical adviser to the energy industry, surveyed 791 senior professionals from firms with annual revenue ranging from $500 million or less to those earning $5 billion and more, Reuters reported.
BP, Shell and many other companies cut capital spending and costs in 2016 after the price of benchmark Brent crude fell to a 12-year low of below $30 a barrel. 
Helped by output cuts by the Organization of the Petroleum Exporting Countries and its allies, Brent climbed to an average price of $70 last year compared to $50 for the period 2015 to 2017. It was trading above $62 a barrel on Monday. 
DNV’s annual outlook of the global oil and gas industry showed 70 % of respondents planned to maintain or increase capital spending in 2019, compared to 39% in 2017. 
Those expecting to sustain or increase operating expenditure also grew to 65% in 2019 from 41% in 2017. 
In addition, 67% believed more large, capital-intensive oil and gas projects would be approved this year. 
“Despite greater oil price volatility in recent months, our research shows that the sector appears confident in its ability to better cope with market instability and long-term lower oil and gas prices,” said Liv Hovem, who heads DNV’s oil and gas division.