Law firm Ashurst has released nine predictions for the oil and gas industry in 2018, and the results are encouraging overall.
Oil prices are set to hit a price of $US70 ($87.50) per barrel, suggesting greater stability. In October 2017, crude oil hit $US60 per barrel for the first time since July 2015. This will result in international oil companies looking to new exploration and development investments for the first time in four years.
Regarding capital raising, the report also states that international oil companies will dispose of more assets such as midstream infrastructure, pipelines and processing facilities to reduce debt-to-capital ratios, while national oil companies will seek to raise funds from capital markets in order to stimulate growth.
Gas and in particular liquefied natural gas (LNG) are also predicted to be the most important revenue streams for the oil and gas sector in 2018, with LNG accounting for about 90 per cent of of projected growth up to 2040.
Ashurst also predicts increased activity in 2018, particularly established countries such as Nigeria and Angola, and burgeoning oil companies such as Senegal, Ghana, Liberia, Kenya and Uganda.
The full report can be read here.