Bottom for E&P spend is near: Pareto Securities

Singapore

EXPLORATION and production (E&P) spending is estimated to decline another 30 per cent for 2016, following a 26 per cent drop in 2015, with the majority of cuts coming from US onshore players - results from the latest Pareto Securities E&P survey showed.

Drawing from this annual survey, Pareto Securities projects a rebound in US onshore investments for 2017. An equity research note from the Norwegian investment bank also said that offshore spending is expected to continue to trend downwards next year, albeit activity levels are expected to gradually increase throughout the year with an improving sentiment.