-- How much will CAPEX decline with sub-$60 barrel prices?
MOUNTAIN VIEW, California,
Dec. 19, 2014 /PRNewswire/ --
Declining oil prices are impacting short term exploration and
production (E&P) capital expenditures (CAPEX) and
profitability, and will provide impetus to shift toward smart CAPEX
and innovative operational expenditure (OPEX), according to new
Frost & Sullivan research.
Photo - http://photos.prnewswire.com/prnh/20141218/165389
The research, "2015 E&P CAPEX Outlook Model,"
estimates global E&P spending in 2015 to decline to
$659.8 billion, down from an
estimated $723.3 billion in 2014, if
the price of crude oil remains around $60 per barrel. This up-to-the-minute research
covers key topics, including top predictions for the oil and gas
industry for the fiscal year 2015 and impact of oil price
fluctuations on the future of the oil and gas industry.
For further insight into these and other trends driving the
short-term industry outlook, join Frost & Sullivan's
complimentary webinar, "Oil and Gas CAPEX Scenarios and Impact
on Digital Transformations," on Jan
15th, 2015 at 10:00 a.m.
EST. Register here: http://bit.ly/1GdM61u.
"The volatile economic scenario will be an inflexion point,
driving the transition to smart CAPEX and innovative operational
expenditure (OPEX). Under any price situation, the oil and gas
industry will accelerate toward the totally integrated digital
oilfield." said Frost & Sullivan Global Vice President of
Economic Research and Automation Sath
Rao.
The North American oil and gas industry has adopted the best of
relevant technologies and automation to stay atop the competitive
landscape. The industry is entering a transformative phase where
leaders will further consolidate.
"As the industry evolves, there will be tremendous opportunities
for solution providers to hasten the adoption of advanced
technologies, including the Industrial Internet of Things (IIoT),
software as a service (SAAS), M2M, energy efficient products – the
list goes on," said Frost & Sullivan Industrial Automation
and Process Control Global Research Manager Laurel Donoho. "We are poised to see
operational efficiency move to the next phase in this
industry."
The 2015 E&P CAPEX Outlook Model is offered to
clients as part of the Scenario Discovery Workshop. The
workshop helps companies assess the impact of oil prices on
business and develop consensus on strategic responses. This
workshop is offered under Frost & Sullivan's Growth
Implementation Solution program. This service provides certified
facilitators and market experts to help industry leaders develop
scenario responses to changing market dynamics. For more
information about the Scenario Discovery Workshop, please email
ariel.brown@frost.com with your full name, job title, company name,
company telephone number, company email address and website, city,
state and country.
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