Upstream in 2016: finding opportunity at low tide

 

How will the upstream sector navigate the challenges ahead in 2016? After a volatile start, the waters look choppy and the route, ambiguous. As companies adapt to struggling oil prices with spending cutbacks and revised portfolios, many will also come to view 2016 as an opportunity to re-evaluate and reinvent. 

With exploration spending screeching to new lows and uncertainty framing the new year, the global upstream sector has challenges ahead. But there are some potential silver linings. An expected increase in M&A activity could spark new life, while developments in Mexico and Iran present new and untapped opportunities.

Our regional experts have prepared specific outlooks for upstream activity across the world this year, highlighted here in our global Insight and on the map below.

View infographic: global_upstream_2016_map.jpg

1. Canada LNG is a go; Exploration offshore Canada impresses
2. Open season for drawing down DUCs
3. Mexico’s deepwater round will be a success
4. US GoM deepwater production will hit an all-time high, while smaller players will surprise with their strength
5. Petrobas will not hit its US$15.1B divestment target by end-2016
6. North Sea activity to fall and fields at risk
7. Eni to sanction the Zohr project
8. Production to stagnate in Nigeria and Angola as investment cuts bite
9. Sub-Saharan Africa market awash with sellers, but where are the buyers?
10. Iran opening up, Saudi to maintain production output
11. Caspian: a year headlined by FID for Tengizchevroil  Future Growth Project (FGP)
12. Russia – output to remain robust
13. China’s 13th Five Year Plan – upstream oil and gas reform expected; China unconventionals
– shale investment continues
14. M&A is back – non-core divestment by the Majors
15. Australian LNGno FIDS in 2016; Gorgon LNG – nearly there
16. Fiscal reform – the dialogue begins

Learn more
Our full report, Global Upstream: what to look for in 2016, prepared by our global upstream research team, is available for on-demand purchase, as well as a part of our subscription service.

Media enquiries
If you would like to interview one of our experts, please get in touch with one of our regional press offices or email us at press@woodmac.com.

Upstream research library
Read our in-depth, proprietary forecasts on 2016 upstream developments in your region of interest, all available for purchase on-demand or as part of a subscription service.

Asia-Pacific upstream in 2016
Caspian upstream in 2016
Europe upstream in 2016
Latin America upstream in 2016
Russian Federation upstream in 2016
Sub-Sarahan Africa upstream in 2016
United States upstream in 2016

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