Thursday, January 15, 2015

Billions of Dollars in Oil Projects Put on Hold

As the oil price continues to collapse, major oil producers are putting the knife to many of their projects.

Royal Dutch Shell on Wednesday abandoned plans for one of the world’s biggest petrochemical plants, a $6.5bn project with Qatar Petroleum, blaming “the current economic climate prevailing in the energy industry”.

 Premier Oil said it would delay a final decision on whether to proceed with the $2bn Sea Lion project off the Falkland Islands until there was a recovery in oil prices.

Statoil, the Norwegian major, said it had handed back three exploration licences on the west coast of Greenland, an area considered one of the highest-cost frontiers in the industry.

Canadian Natural Resources, which operates in Western Canada, the North Sea and offshore West Africa, this week reduced its capital expenditure forecast for this year from C$8.6bn to C$6.19bn, citing reduced drilling.

(via FT)

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