Oil & Gas

International oil and gas majors, including Total Energies and ExxonMobil, along with the national oil companies (NOCs) of the Middle East, are gearing up to approve approximately 30 projects in 2024. These projects, valued at a total of $125 billion, are estimated to hold around 14 billion barrels of oil equivalent (boe) of resources. This projection is based on Wood Mackenzie's latest analysis of upstream oil and gas projects expected to reach final investment decisions (FIDs) this year.

Wood Mackenzie anticipates a higher number of projects receiving FIDs in 2024 compared to the 22 upstream developments sanctioned last year. This increase is attributed to several projects that were originally planned for approval in 2023 but faced delays. The consultancy predicts that operators, facing delays and postponements in many projects, will commit to more projects this year.

While NOCs in the Middle East will lead in project approvals, major international companies like Total Energies and ExxonMobil are also expected to be active. This is particularly true as they focus on advantaged deepwater resources, which offer favorable economic returns and low emission intensity. According to WoodMac, these deepwater projects will be a key focus for Big Oil this year.

The 'FID class of 2024' is expected to demonstrate significantly lower average emissions intensity compared to the global upstream average. WoodMac estimates that the projects sanctioned this year will have an average emissions intensity of 13.6 kg of CO2e per boe, which is well below the global upstream average of 21 kg CO2e/boe, including liquefaction emissions. Project economics are also improving, with a higher share of liquids compared to natural gas in the sanctioned projects for 2024.