Global energy projects plunge 21pc
London, January 28, 2014
The global energy project activity dropped to 412 projects in the last quarter of last year, a significant 21 per cent decrease compared to the previous quarter, said a report.
It was, however, a small two per cent increase from the same period in 2012.
The EIC Monitor quarterly report from the Energy Industries Council (EIC) also pointed out that the total potential investment value of $222.3 billion almost halved on the last quarter, decreasing by 48 per cent.
The upstream sector saw a decrease of 25 per cent in the total number of projects proposed during the quarter, with a 36 per cent decrease in the total potential investment value of new project announcements since Q3.
In the midstream sector, there was a 31 per cent decrease in the total potential investment value of new projects in Q4, with a two per cent decrease in the number of new projects announced.
The downstream sector recorded a 30 per cent decrease in the number of new projects, while the total potential investment value decreased by 34 per cent.
The renewable sector saw a 20 per cent decrease in the total number of projects, with a 55 per cent decrease in the total potential investment value of new projects announced since Q3.
In the power sector, the number of new projects decreased by 23 per cent in the last quarters, while the total potential investment value of new projects decreased by 67 per cent.
The EIC Monitor tracks nearly 10,000 projects proposed or under development in the global energy industry and provides a barometer, broken down into oil and gas (downstream, midstream, upstream), nuclear and conventional power, and the renewables sectors.
Data is analysed by the number and value of new (both active and proposed) projects recorded by the EIC each quarter.
Claire Miller, CEO, said: “Overall, figures this quarter indicate that project activity in the energy industry has contracted with a 21 per cent decrease in the number of new projects compared to the third quarter of 2013, along with a significant reduction in investment.
“Despite lower investment, taken in the broader context of the last six months, project numbers have returned to similar levels found in Q2 2013 following a sharp rise in activity in Q3 2013.” - TradeArabia News Service