Analysts at Fitch Solutions Country Risk & Industry Research have outlined in a new report that they do not expect 5G to have a significant role in oil and gas operations in the next five years, as low oil prices have reduced the capital expenditure outlook.

In the report, which was sent to Rigzone on Tuesday, the analysts noted that the promise of 5G would fit multiple areas of both upstream and downstream operations but highlighted that overall investment in the industry would be limited over the next half decade.

“Historically, in periods of low oil prices in addition to investment reduction, the oil and gas industry’s focus turns to improving efficiency,” the analysts stated in the report.

“Based on our five-year Brent forecast, oil prices across the period will average well below recent years, a sign that increased investment across the industry will likely be lower than in the recent past. The lower oil price outlook will both limit overall investment and push the industry to greater efficiency by reducing costs and improving productivity,” the analysts added.

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Source: Rigzone