%20this%20year,%20with%20total%20production%20expected%20to%20rise%20by%20990,000%20boepd.Despite%20supermajors%20cutting%20their%20spending%20in%20the%20Permian%20Delaware%20Basin%20by%20more%20than%2030%%20last%20year,%20Rystad%20predicted%20a%2040%%20increase%20in%202022%20over%202021.){kind=link}
Global oil and gas investment is set to rise by 20% this year, according to Rystad Energy, with growth driven by soaring oil prices and large amounts of money flowing into projects in Brazil, Guyana, West Africa and Australia.
Earlier this year, Rystad had forecasted an 8% growth for 2022. However, with Brent consistently topping $110 and WTI flirting with the same levels, we are now witnessing the highest growth rate forecasts since 2008.
According to Rystad, shale investment is expected to expand by 35%, with the Permian basin leading the way, while deepwater offshore drilling investment is expected to rise by 30%. The most significant increase in investment is coming from locations like Guyana, where ExxonMobil has made a series of huge finds in the last seven years. Exxon has produced five oil discoveries in the Stabroek Block offshore Guyana this year alone, with partners Hess and CNOOC bringing total resources to roughly 11 billion barrels.
Due to high oil prices and solid economics, Rystad announced earlier this month that production in the Permian Delaware Basin will reach a new high of 5.7 million barrels of oil equivalent per day (boepd) this year, with total production expected to rise by 990,000 boepd.
Despite supermajors cutting their spending in the Permian Delaware Basin by more than 30% last year, Rystad predicted a 40% increase in 2022 over 2021.