The Zhitong Finance App learned that Guotai Junan Securities released a research report saying that expectations of US Trump's victory have increased, and they are optimistic about the increase in demand for US oil service equipment. Since 2022, oil companies' capital expenditure support has continued to rise. It is expected that the capital expenditure of oil companies will continue to grow in the future. The increase in capital expenditure in the crude oil industry will gradually be transmitted to equipment vendors, driving the boom in the oil service equipment industry. With the continuous development of deep-sea oil and gas, the industry's demand for high-end gate valves continues to rise. Demand for FPSO related equipment is expected to continue to grow, and related equipment manufacturers will continue to benefit.

Expectations that US Trump will win the election have increased, and they are optimistic that the US demand for oil service equipment will increase. There are significant differences between Trump and Biden in their energy policy propositions. The Trump administration advocates relying on traditional energy to achieve net energy exports and create jobs. Trump withdrew from the Paris Agreement during his 2017-2020 term to promote traditional energy development and reduce environmental surveillance. On June 28, 2024, Trump criticized the “Paris Agreement” in his first debate with Biden. If Trump wins the election, he is expected to withdraw from the “Paris Agreement” again and lower oil prices by easing local oil and gas exploration and development, so he is optimistic about the future growth in US demand for oil service equipment.

Offshore oil and gas capital expenditure has risen sharply, and deep-water projects have increased significantly. 1) According to Rystad Energy data, offshore oil and gas reserves are higher than onshore. In 2011-2023, the average annual oil and gas exploration discovery was 18 billion barrels of oil equivalent, of which deep water accounted for 51%. The global oil and gas exploration trend is increasing the share of deep-water oil and gas, making onshore exploration more difficult; 2) According to Rystad Energy data, the total capital expenditure for new conventional oil and gas development projects approved in the world in 2023 exceeded 200 billion US dollars, an increase of more than 50% over the previous year, of which new offshore projects were about 125 billion US dollars/ +47.31%, about 30 billion dollars for conventional onshore projects, and 50 billion dollars for new onshore LNG plants. 3) According to CNOOC Economic Research Institute, global offshore crude oil production in 2023 was about 27.6 million b/d, +1.7% year over year, with ultra-deep water oil production increasing 10.6% year on year.

The capital expenditure of oil companies is expected to continue, boosting the prosperity of oil service equipment manufacturers. Since 2022, high global oil prices have driven the capital expenditure recovery of the world's major oil companies. According to Energy Intelligence, the upstream capital expenditure of the petroleum industry is expected to reach 620 billion US dollars/ +10% in 2024. According to our capital expenditure statistics for the seven major oil giants, according to the central value of each company, the seven companies have capital expenditure of 162 billion US dollars/ +1% in 2024. Since 2022, oil companies' capital expenditure support has continued to rise. It is expected that the capital expenditure of oil companies will continue to grow in the future. The increase in capital expenditure in the crude oil industry will gradually be transmitted to equipment vendors, driving the boom in the oil service equipment industry. With the continuous development of deep-sea oil and gas, the industry's demand for high-end gate valves continues to rise. Demand for FPSO related equipment is expected to continue to grow, and related equipment manufacturers will continue to benefit.