Exploration activity will increase in 2018, but market uncertainty and the need to manage debt levels will remain key constraints to investment. That is the view of oil and gas analysts at BMI Research, who highlighted that a recent three year downturn had forced exploration and production (E&P) companies to reduce spending and improve cost management. The sector is benefiting from a resurgence in cash flow amid higher oil prices and E&P companies are preparing to ramp up activity this year to expand their portfolio, targeting a number of new frontier markets, according to BMI. Despite increasing confidence, however, E&P companies will continue seeking a balance between increasing spending on new projects, reducing leverage and increasing shareholder distributions, BMI analysts said in a brief research note sent to Rigzone. “We believe that spending caution will prevail over the coming months as companies maintain financial discipline,” the analysts stated. BMI’s […]