While the oil price is falling and continues to fall, down to USD 83 today, the development is starting to hurt the industry and the many subcontractors that depend on the investments. But the major game-changer would be if the price drops to a level where investments yet to come are simply abandoned because they become unfeasible - a further sharp decline in oil prices could lead to uncertainty if a return on the invested capital is realistic.
The giant Johan Sverdrup project - located in the North Sea and run by Maersk Oil, Statoil and Lundin - is being hailed as the project that could offset the pessimism currently seen throughout the Danish and Nordic offshore sectors. Next year the partners must make a final decision on how to establish the major facility, and the Norwegian Parliament (Stortinget) will have to issue a final approval for the environmental consequences.
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