- Westmount Energy projects investment in the oil sector’s upstream segment to reach its highest level since 2015, up to $528 billion.
- Chevron’s $53 billion acquisition of Hess gave the American oil major a 40% stake in the prolific Exxon-operated Stabroek asset.
Westmount Energy Limited projects investment in the oil sector ‘upstream’ segment to reach its highest level since 2015, up to $528 billion, highlighting estimates from the International Energy Agency (IEA). Westmount Energy Limited told investors that deepwater exploration ‘hotspots’ offshore Guyana and Namibia are well positioned to capture increased industry spending on exploration.
However, the AIM-quoted investor in exploration companies noted that there remains “the risk of underinvestment, relative to what is needed to meet forecast energy demand across a range of ‘net zero’ demand trajectories”. Indeed, with Guyana, this was underlined in recent weeks with Chevron’s $53 billion acquisition of Hess, which (as well as a significant US shale portfolio) gave the American oil major a 40 per cent stake in the prolific Exxon-operated Stabroek asset.
Chevron described Stabroek, host to some 11 billion barrels of crude reserves, as “an extraordinary asset with leading cash margins and low carbon intensity expected to deliver production growth into the next decade”.