Rystad Energy predicts that the Middle East would invest $41 billion on offshore oil and gas in 2025

According to a recent analysis from Oslo-based Rystad Energy, spending in the Middle East's offshore oil and gas (O&G) sector is expected to rise for at least the next three years, from $33 billion in 2023 to $41 billion in 2025.

Large-scale projects in Saudi Arabia, Qatar, and the UAE will propel offshore upstream spending in the region to a new high.

According to the report, these nations are utilizing their extensive offshore resources to meet the expanding global oil demand, supported by the requisite infrastructure and financial resources to surpass other producers.

Yet, with $214 billion in new projects planned, the global oil and gas (O&G) sector will experience its fastest growth in ten years over the course of the next two years.

The annual greenfield capital expenditure (capex) level was breached last year and will be breached once more this year, marking the first two consecutive breaches since 2012 and 2013.

In 2023 and 2024, offshore activities will probably account for 68 percent of all conventional hydrocarbons that have been sanctioned, up from 40 percent from 2015 to 2018.

Offshore initiatives will account for over half of all sanctioned projects in the following two years, up from just 29% from 2015 to 2018.

The market for offshore services will benefit from these new investments, as supply chain spending is expected to climb by $21 billion annually in 2023 and 2024, growing by 16 percent, a decade-high rate.

According to the research, offshore rigs, ships, subsea, and floating production storage and offloading (FPSO) activity are all expected to boom.

Although South America, the UK, and Brazil are behind marginally, the Middle East is still in the lead.

For the next two years, the UK and Norway will increase their investments in the North Sea. This year, UK offshore spending will climb by 30% to $7 billion, while Norwegian investments will reach $21.4 billion, up 22% from 2022.

This year, Brazilian upstream spending is anticipated to be close to $23 billion, with investments in Guyana exceeding $7 billion.

According to the research, North America would see spending on offshore reach $17.5 billion in the US and $7.3 billion in Mexico.