Until recently, oil industry analysts and executives were lamenting the slump in global investment in upstream oil, and many continue to predict a looming oil supply shortage in the early 2020s, when the sector will feel the pinch of the plunge in major project investment during the downturn. But higher oil prices and lowered development and project costs have lately led to cautious optimism and measured risk-taking within the industry that is set to see an uptick in global oil investment this year, energy consultants Wood Mackenzie say. While much of the investment increase is happening in U.S. onshore—with shale companies lifting 2018 budgets by 15-20 percent in response to higher prices—conventional oil project investment around the world is also coming back, especially in top offshore areas where project economics are competitive with U.S. tight oil, says Simon Flowers, Wood Mackenzie’s Chairman and Chief Analyst. As early as in […]