Projects in the pipeline take a blow as oil prices head south
The plunge in oil prices have hit the upstream sector hard.
Cuts are being made across the industry that will have a dramatic impact on the industry’s project pipeline.
Global natural resources consultancy Wood Mackenzie believes almost all pre-final investment decisions (FID) on projects will be deferred. And of the 50 or so projects identified with potential to go ahead this year, only 10 have a chance of potentially proceeding.
Rob Morris, from Wood Mackenzie’s upstream research team, said: “$110bn (€102bn) of investment will almost certainly be deferred, with another $100bn (€92bn) at risk.
“New committed investment could be as low as US$22bn if...