Asia Pacific investment and cost trends: focus on gas in an increasingly mature region

Upstream capital expenditure in Asia Pacific has been cut by US$30 billion since 2014. Investments in shallow water and tight gas projects have remained steady but deepwater projects have been deferred. Operating costs are only down 12% from 2014 due to an already low cost base and an increasingly mature asset base. In the short term, operators are focused on leveraging infrastructure for growth - maintaining utilisation of gas pipelines and LNG facilities will be key. This is clearly visible in recent FIDs and we expect the trend to continue.