This is despite growing confidence in the market.
Quality assurance and risk management company DNV GL reported that in their global study on oil and gas (O&G) industry, 68% of Singapore-based senior oil and gas professionals expect a rise in cost control. This is despite the industry's growing confidence changing from 28% in 2017 to 57% in 2018.
Further, 70% said that their company will either maintain or increase capital spending in 2018, whilst 41% expect an increase in spending on R&D investments.
51% of the respondents also said that they are optimistic of oil price of about US$70 for 2018.
Here’s more from DNV GL:
Nearly three quarters (73%) of senior industry professionals globally say their organization was somewhat or highly successful in achieving cost efficiency targets in 2017, compared to 65% in Singapore.
Nearly two-thirds (62%) of respondents globally expect their organization to maintain or increase headcount in 2018, compared to 52% in Singapore. This compares to 43% globally and 33% in Singapore in 2017.
58% of respondents globally expect to maintain or increase operating expenditure in 2018, up 17 percentage points from 41% last year, compared to 43% in Singapore, up from 28% in 2017.
Although respondents in Singapore are still significantly more confident in both the sector and organization than in 2017, they are are less optimistic than global counterparts on investment increases in capex (5% versus 22%) and opex (5% versus 19%).
Almost half (49%) of Singaporeans questioned stated that the greatest barrier to growth in the country’s oil and gas industry is uneconomic oil prices compared to 37% globally. Notably, twice as many oil and gas professionals in Singapore cited decreased demand for oil and gas as the second biggest barrier to growth (27% versus 12% globally).
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