01 Aug 2016
(MENAFN) As a result to the drop in the capital costs, it’s expected to have long-lasting effects on the global conventional energy output.
Bank of America Merrill Lynch (BOFAML) updated in ‘Global Energy’, that capex in the global oil and gas industry went down in the last 18 months, with a total amount from USD410 billion reached this year, compared to USD690 billion in 2014.
Saudi Arabia and the rest of GCC, with Iraq and Iran, will try to maintain gaining market share. As a matter of fact, the growth in global oil supplies in the previous year has come already from GCC, Iraq and Iran.
As BOFAML report stated, LNG prices have separated from Brent. Furthermore, too much LNG was bought by Asian buyers on long-terms contracts and will be sold in the face of the largest supply wave ever.
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