Investment priorities in the oil and gas sector are shifting after an oversupply of oil and the growth in shale production, with more focus on smaller projects that promise quicker paybacks. The U.S. Department of Energy (DOE) announced a new program to help small businesses get access to capital for their energy projects. The industry is reacting to the lower price of oil with tighter financial discipline and by shedding staff. Standardisation across the industry has also helped control costs. However, the lack of funding for larger projects and rising demand for energy are putting pressure on companies to continue to innovate.
Investment priorities in the oil and gas sector are shifting after an oversupply of oil and the growth in shale production, with more focus on smaller projects that promise quicker paybacks. Investors are looking for scaled-down offshore projects and onshore brownfield and satellite fields in order to reduce capital expenditure. The industry is reacting to the lower price of oil with tighter financial discipline and by shedding staff. Standardisation across the industry has also helped control costs. However, the lack of funding for larger projects and rising demand for energy are putting pressure on companies to continue to innovate.