Global oil majors delay $200 billion in projects due to supply glut

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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.

Related: OPEC’s output shadows shale as global supply glut continues

The deferrals “create a substantial hole in the industry’s investment pipeline,” accounting for about 20 billion barrels of reserves, the Edinburgh-based researcher said in an e-mailed report.


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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 percent of the affected reserves are in deep-water projects, while almost 30 percent are in Canadian oil sands, the report showed.

www.bloomberg.com


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