US still driving oil investment recovery
When I read that energy executive need higher prices in order to pull the trigger I also see that the energy world has not learned the lessons yet. We are going towards another round of expensive oil and oil products. The pressure to develop better alternatives (meaning anything else than oil) will only rise and this time it’s going to ram batter the oil world. The time of cheap oil is indeed over – some sprints down below 50 won’t change that.
Total global energy industry spending will rise by 7% this year, to $580bn, according to a report released this week from Bernstein Research—an investment bank. But that growth is heavily weighted to the US, and will be driven by tight oil development in particular. Spending on new production outside the US is expected to rise by just 4% this year—around $15bn—to $380bn, noted the bank, and remains far below the peak in 2014.