Oil majors delay $200 billion of spending, Wood Mackenzie says
STEPHEN BIERMAN
EDINBURGH, United Kingdom (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 Ltd.
The deferrals “create a substantial hole in the industry’s investment pipeline,” accounting for about 20 Bbbl of reserves, the Edinburgh-based researcher said in an emailed report.
Brent crude prices have dropped by half in a year after the Organization of Petroleum Exporting Countries decided to maintain output to defend market share amid a global supply glut.
More than 50% of the affected reserves are in deepwater projects, while almost 30% are in Canadian oil sands, the report showed.
