Oil news
Renewables and Decarbonation Projects Run at Different Speeds
In 2022, we could see how much Renewables and Decarbonation projects run at different speeds. Energy Transition market is booming, but this sector is not uniformed.
The two barre graphs below shows how Renewables projects and Decarbonation projects evolves year per year in term of capital expenditure. These bar graphs come from the projects database www.projectsmartexplorer.com
The Oil & Gas and Petrochemical market is surging on Q2 2021.
Along that year, the Covid and the mass communication about energy transition affected heavily projects investment decisions. So, that 2021 started in great uncertainty. But the demand was there. Therefore, we could observe a well loaded funnel of projects for sanction in 2021 and 2022.
In this period of social and economic confusion, Gas projects seem to benefit from an exceptional stability.
The level of investment for gas projects is equal in 2020 to 2019.
As part of the underlying Oil & Gas and Petrochemical market revolution, the business model for projects is changing.
In fact, the new business model is a return to the basic of ROI (Return on Investment) calculations.
Thus, the new business model aims to shorten project timeline while controlling costs. Delivering “Fast-track” projects in 2-3 years.
Surprisingly, the Oil & Gas and Petrochemical market stands robust on Q3 2020 by reaching 12 months 2019 capital expenditure.
