Oil and Gas Upstream Market Outlook
Oil & Gas | Report | March 2021
2021 marks an opportunity for upstream operators to overcome cost challenges presented amid last year's turbulent market through appropriate CAPEX and OPEX forecasting.
In this report, we provide cost forecasts for key CAPEX categories including OCTG, onshore & offshore drilling rigs, and OPEX categories including production chemicals and compression services across Europe, Middle East and Africa (EMEA), and share a market cost outlook for Africa specifically during March 2021 to February 2022 vs. the last 12 months.
For example, we observe that historical and forecasted materials category costs are largely similar to those faced by EU operators, given the global nature of the market for such goods. However, forecasts are more muted than those for EU operators, due to a pessimistic 2021-2022 recovery outlook across African producers.
At a strategic level, operators are leveraging these forecasts to get a better understanding of how E&P operator costs differ in Africa vs. the wider EMEA market. At an operational level, operator supply chain teams use these outlooks to validate in-house cost modelling assumptions, better forecast spend changes, and optimise costs.
Read the full insight here: https://www.costinsights.com/2021-emea-key-cost-trends-in-upstream-0
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