Barclays Forecasts Rise In Global 2019 E&P Spending

As market dynamics continue to push oil prices along the rollercoaster of volatility, global E&P spending could rise 8% this year to an estimated $414.5 billion, according to a report released this week by Barclays.

But more spending likely won’t be seen everywhere, and growth in some regions won’t be as robust as in the past.

“The growth mix is poised to reverse in 2019 as North America slows [+9% vs. +18% in 2018], while international markets accelerate [+8% vs. 4% in 2018],” Barclays said in the report. Analysts added that North America “spending is exposed to more downside risk given the recent oil price collapse,” which is not fully reflected in budgets.