Senior oil and gas sector professionals expect a step change in the industry’s capex, opex and R&D spending levels in 2018, as new research from DNV GL, confirms confidence in the industry has doubled.
After three tough years, confidence in industry growth has risen globally from 32% in 2017 to 63% this year. 66% of respondents say their company will maintain or increase capital spending in 2018, compared to 39% last year.
The report reveals an imminent turnaround in spending on R&D and innovation after three years of cuts and freezes. More than a third (36%) of 813 senior sector players surveyed, expect to increase spending on R&D and innovation in 2018. Digitalization (37%) and cyber security (36%) will form the principal areas of R&D investment focus in 2018.
Strict discipline will remain in the oil and gas industry, however. Half of respondents are steadfast in their efforts to increase cost control measures in 2018, consistent with 2017 (51%), suggesting permanent new discipline in the industry.
