Oil and gas firms shelve around $400bn projects amid ‘butal’ crude price plunge
ALMOST $400 billion worth of new oil and gas projects have been shelved around the world in response to the plunge in oil prices, an analysis by Wood Mackenzie has found.
The Edinburgh-based oil and gas consultancy reckons 68 major projects with a total budget of $380bn have been deferred since the crude price started tumbling in 2014, as oil and gas companies have slashed investment in new fields.
WoodMac found 22 projects had been deferred in the last six months of 2015 alone. Deepwater developments have been hit hardest.
Angus Roger, principal analyst upstream research for WoodMac, said: “The impact of lower oil prices on company plans has been brutal.”
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