Australia’s upstream sector will see greater integration of technology over the coming years, according to a new report from Fitch Solutions Macro Research.
“As one of the few developed markets in the [Asia Pacific] region with a fully-liberalized upstream industry, stable operating environment and a relatively tech-savvy workforce, Australia’s oil and gas sector offers an ideal environment for technology and innovation to prosper,” Fitch Solutions Macro Research said in the report, which was sent to Rigzone.
“A forecast upturn in industry-wide capital spending is expected to drive stronger spending on technology, as firms’ near-term strategies shift to focus on maximizing production from existing assets to capitalize on stronger oil prices, following years of subdued prices,” the company added.
Fitch Solutions Macro Research said industry sources estimate $22.5 billion of upstream capital expenditure will be spent in Australia over 2018 to 2020.
“Offshore and deepwater projects will account for 85 percent of this amount, led by spending on Inpex’s newly commissioned Ichthys LNG and brownfield works across Western Australia and Northern Territory,” Fitch Solutions Macro Research stated.
“By comparison, onshore investment will be kept relatively modest, amid tightening environmental regulations, continued state-level opposition towards hydraulic fracturing, and geographic challenges to connecting remote onshore reserves to major consumer markets,” the company added.
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