Oil and Gas Profits Don’t Translate Into Spending Splurge: Chart
(Bloomberg) -- The third-quarter earnings season for the energy industry is in full swing, and investors are looking for clues if oil prices near a four-year high will translate into increased spending on projects. “Significant investment flows” have returned to the oil and gas industry aimed at bringing new supplies to market, Saudi Arabian Energy Minister Khalid Al-Falih said last week. While spending on new and existing oil and gas projects globally will rise 5 percent this year to $480 billion -- nearly 40 percent less than in 2014 -- investment won’t hit the $600 billion the industry needs annually through the next decade to meet future demand, according to Wood Mackenzie Ltd.
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