Wood Mac: Global oil, gas majors delay $200B of spending as crude slumps
7/27/2015
By STEPHEN BIERMAN
Bloomberg
Global oil and natural-gas producers have delayed $200 billion of investment in more than 45 projects following the slump in crude prices, according to Wood Mackenzie.
The deferrals “create a substantial hole in the industry’s investment pipeline,” accounting for about 20 billion bbl of reserves, the Edinburgh-based researcher said in an e-mailed report.
Brent crude prices have dropped by half in a year after the Organization of Petroleum Exporting Countries (OPEC) decided to maintain output to defend market share amid a global supply glut.
More than 50% of the affected reserves are in deep-water projects, while almost 30% are in Canadian oil sands, the report showed.
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