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Projects in the pipeline take a blow as oil prices head south

Cuts are being made across the industry
Cuts are being made across the industry

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...

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Cuts are being made across the industry