The market sector for services in engineering, procurement, construction, and installation (EPCI) has been trudging along through the downturn since the oil price crash. However, 2019 is set to be the year that activity not only picks up, but the first year of growth since oil traded at over $100/bbl. This growth comes about thanks to an increase in contracts awarded in 2017 that are now seeing significant expenditure. While the market is expected to remain flat next year and revive again in 2021, growth will likely surge in 2022. Though this will not bump global markets back up to the 2014 glory days, one exception will likely be the Middle East. If all goes as planned, this will surpass even the EPCI expenditures last seen in 2014.
– Sara Sottilotta, Analyst, Oilfield Service Team, Rystad Energy