23January2018IntegratedOilIntegratedOilIndustrialsIntegratedOilIndustryUpdateNorthAmericaUnitedStatesIndustryIntegratedOilDate23January2018DeutscheBankMarketsResearchAnUpdatedLookattheUpstreamFIDBacklogExpectadeepshort-cyclebacklogandheightenedmarketfocusoncapitalstewardshiptoforceamoregradualnormalizationinFIDactivityWhiletherecentrecoveryinfront-monthcrudepriceshasrekindleddiscussiononthepaceofprojectsanctionsacrossthesector,weexpectheightenedshareholderfocusoncapitalstewardshiptokeeplargeupwardrevisionstoprioroutlined2018+budgets(modestlyincreasingvs.2017)limitedforseveralofthelargecapdiversifiedsandtheUSmajors.Nevertheless,improvedoperationalefficiencies/economicsisexpectedtonormalizeglobalprojectsanctionactivityfollowingtroughlevelsobservedoverthelast4years.Infact,~34%ofWoodmac’s‘probable’FIDreservebacklog“breakseven”at$60/bblorl