Regional Surge in O&G and Clean Energy Spending Redefine Future Prospects
Pietro Ferreira, senior market intelligence analyst for the Energy Industries Council (EIC), a Breakbulk events global knowledge partner, assesses the project landscape in the Americas as the region’s oil and gas and renewable energy industries flourish.
From Issue 3, 2024 of Breakbulk Magazine.
Oil and gas exploration and production (E&P) activities in the Americas are accelerating, particularly in Brazil, Guyana and the Gulf of Mexico (GoM). Brazil’s highly productive pre-salt projects have become a priority for its national oil company, Petrobras, which plans to invest over $70 billion in E&P over the next five years, with a special focus on floating production, storage, and offloading (FPSO) developments.
Meanwhile, Guyana’s Stabroek block continues to yield exploration successes, driving ExxonMobil forward with multiple field development phases, including a significant $12.9 billion phase expected to be sanctioned in 2024. The GoM remains a strategic focus for international oil companies like Shell, BP and Chevron, which are investing in both standalone and tie-back developments, underlining the region’s enduring potential.
Simultaneously, the U.S. has emerged as a key player in LNG exports, crucial to Europe’s energy security in the aftermath of the Ukraine conflict. However, the future of several proposed LNG liquefaction projects, representing a capital expenditure of $223 billion, hangs in the balance, pending federal decisions post the U.S. elections.
Parallel to these developments, the clean energy sector is flourishing, particularly in the U.S., which leads clean energy innovation in the Americas. Thanks to the $369 billion in tax incentives provided by the 2022 Inflation Reduction Act, projects across wind, solar, clean hydrogen and carbon capture and storage (CCS) are gaining momentum.
Despite potential policy shifts with upcoming elections, bipartisan support for wind and solar suggests continued growth. Offshore wind, in particular, faces challenges, including supply chain delays, which have led to project cancellations, underscoring the complexities of transitioning to renewable energy sources.
As countries like Brazil and Colombia explore offshore wind opportunities, the U.S. is making strides in clean hydrogen, aiming to establish a nationwide infrastructure supported by significant government investment.
Breakbulk Americas 2024 is happening on 15-17 October in Houston.
TOP PHOTO: ExxonMobil’s Prosperity FPSO at Payara, Guyana. CREDIT: ExxonMobil
