New oil and natural gas projects around the world are set to triple in 2019 with increased investments, according to the independent energy research and business intelligence company, Rystad Energy.
The expected increase in new oil and gas volumes this year is a result of the surge in final investment decisions (FID) on new projects, Rystad Energy said in a statement.
The total volumes of oil and gas, excluding shale and tight oil and gas prospects, could be more than 46 billion barrels of oil equivalent (boe), according to research conducted by the company.
"We expect global FID volumes in 2019 to triple over last year, and 2019’s mega project awards could lead to billions of subcontracting dollars in coming years," Rystad Energy upstream research analyst Readul Islam said in the statement.
"The only supply segment likely to shrink this year is the oil sands, whereas deepwater, offshore shelf and other conventional onshore developments are all poised to show substantial growth," he said.
All regions in the world, except Europe and North America, are set to see robust growth in production this year, he added.
However, delays to some mega projects, which are expected to be approved in the second half of this year, could turn the production volume down significantly, he said.
Liquefied natural gas (LNG) is expected to make up one third of the estimated FID volumes in 2019, according to Rystad Energy.
"As demand for cleaner fuels rises, the threat of an LNG undersupply developing by the mid-2020s is likely to spur sanctions for natural gas projects in Africa, Australia, the Middle East and Russia," the statement said.
Since the collapse of oil prices in mid-2014, most oil and gas investments around the world have been postponed. Rystad said these delayed projects can make up almost a quarter of the FID volumes in 2019.
In addition, Saudi Arabia could kick off three major offshore shelf expansion projects in 2019 that would collectively account for nearly a fifth of global FID volumes this year, according to Rystad.
By Ovunc Kutlu