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Intelligence for energy companies seeking a data-driven approach to cost management

Europe O&G: 2021 Upstream Market Forecasts

March 9, 2021 at 10:13 AM / by Wood Mackenzie Supply Chain

2021 marks an opportunity for upstream operators to overcome cost challenges presented amid last year's turbulent market through appropriate CapEx and OpEx forecasting. 

In our latest market report, we provide cost forecasts for key CapEx & OpEx categories and outline why we see cost increases across almost all of them which are forecast to rise between ~1%-12% between February 2021 and January 2022. 

Some of the top categories with notable inflationary/deflationary trends included in the report are: 

  • CapEx: OCTG, onshore & offshore drilling rigs, and wellhead equipment services
  • OpEx: Production chemicals, compression services, and offshore support vessels

As operators focus on optimizing their costs in 2021, it is key to leverage market forecasts to estimate key cost changes and forecast spend. 

Market Forecast Overall Weighted Trend Based on Brent Crude Spot Price Scenarios

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To request more information and to view the full upstream report, please fill out the form to the right and don't hesitate to contact us at  costinsights@poweradvocate.com.

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