Thursday, December 11, 2014

Where Does That Capex Go?

Reuters report, link via CNBC, with a headline saying that E&P spending could drop by as much as $150 billion in 2015.  That is a lot of money.  So who makes all this stuff for the oil and gas industry?  All the pipes, rigs, pump, computers, compressors, ROVs, etc, where do they all come from?

Certainly oil exporting nations pay for capex to produce oil.  But do Nigeria, Iran, Iraq, Libya, Saudi Arabia, etc produce the equipment they have installed in their fields?  I wonder if countries like Sweden and South Korea won't take a hit from all of this.

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