The oil and gas industry will need as much as $21.4 trillion in capital expenditures between now and 2030 to meet sharply growing global demand for hydrocarbons forecast by experts, according to analysts.
Larry G. Chorn, the chief economist for Platts, which provides energy and commodities information, argues capital spending is likely to exceed $1 trillion annually in 2016 and $2 trillion in 2026 as the industry tries to satisfy surging consumption in the U.S. and abroad.
The bulk will go toward exploration, development and maintenance of the crude oil supply, the Platts’ analysis says. Refining and transportation will account for the remainder. “The coordination and management of these projects are going to require a tremendous effort,” Chorn told petroleum executives at an industry conference.
How about a little more effort into renewables, instead?