Operational and Financial Overview
ENSCOROWAN
$ billions
250
Several Years of Underinvestment by
Major E&Ps Has Impacted Reserves
Capital Expenditures by Major E&Ps¹
200
212
215
-56%
186
150
171
154
100
122
122
100
105
95
50
Major E&Ps reduced capital
expenditures by 56% from
2014 highs in response to
lower commodity prices
2010
2011
2012 2013 2014 2015 2016 2017
2018
2019E
Average Reserve Life for Major E&Ps
# years
14
13
12.8
12.9
-19%
12
12.3
12.1
12.0
11
11.1
10.9
10.7
10
10.4
9
8
2010
2011
2012 2013 2014
2015
2016
2017
2018
Source: Rystad Energy SupplyDemandCube and FactSet as of April 2019
1 Major E&P customers defined as BP, Chevron, ConocoPhillips, Eni, Equinor, Exxon, Repsol, Shell and Total
9
■ After four years of significantly
lower levels of investment, the
average reserve life for the
Major E&Ps has gradually
declined to its lowest point in
the past several yearsView entire presentation