Close to $90bn in annual capital expenditure (capex) will be invested into 2,006 shallow-water oil and gas fields globally between 2018 and 2020, according to GlobalData. Capital expenditure into shallow-water conventional oil projects will add to up to $152bn over the three-year period, while heavy oil fields producing in shallow waters will require $15.5bn over the same period. Investments into global shallow-water gas projects will top $97.7bn in upstream capex by 2020.
GlobalData reports the average remaining capex per barrel of oil equivalent (boe) for shallow-water projects at $5.50. Shallow-water conventional gas projects have the lowest remaining capex per boe at $3.30, followed by shallow-water heavy oil and conventional oil developments with $8 and $8.10 per boe respectively.
Top ten countries with shallow-water capital expenditure by 2020
Source: GlobalData Upstream Analytics
GlobalData expects that the Middle East will drive global shallow-water capex, spending $68.3bn by 2020, or 26% of the total. Europe and Asia will follow with $58.7bn and $44.1bn respectively in shallow-water investments over the three-year period.
In terms of remaining capex per boe, the Middle East will require $7.40 for its conventional oil projects, $6 for heavy oil and $1.60 for conventional gas projects located in shallow water. Europe will need $13.50, $11.50 and $11.30 per boe for its conventional gas, heavy oil, and conventional oil shallow water projects respectively. Heavy oil shallow water projects in Asia will have the highest remaining capex per boe at $9.80, followed by conventional oil and conventional gas at $6.10 and $4.70 per boe respectively.