The international oil companies have drastically decreased investments for new projects in 2014.
The US Energy Information Administration (EIA) has released a new analysis, which depicts the new tendency.
In this analysis, a review has been done of the capital expenditures in the upstream sector for 23 oil companies and the conclusion is that, besides an overall investment-weak 2014, the companies have been less enthusiastic about putting money in new projects, which has dropped by 12 percent in the fourth quarter of 2014 compared to the same period in the previous year.
The upstream sector is the part of the oil industry, which focuses on extracting oil and gas, compared to mid and downstream (refining, transportation and sales of products). The EIA writes, that the upstream sector in particular has a close connection with the price of oil and this is why it is believed that the low interest in investment is related to a low oil price throughout the second half of 2014.
The industry invested a total of USD 77 billion in new upstream projects in the fourth quarter last year, and distributed over the whole year, the number was six percent lower than in 2013.
EIA writes, that the development could be a contributing factor in reducing costs of oil extraction in the long term.
UK plans lower oil taxes in the North Sea
More from ShippingWatch
Coal comeback prompts new trend within dry bulk: "It’s unfortunate for the climate, but it’s necessary right now"
Demand for coal is soaring in Europe due to Russia’s invasion of Ukraine, and the new market supports dry bulk carriers, say the chief execs of Lauritzen Bulkers, Ultrabulk and Golden Ocean to ShippingWatch.
Maersk Broker ready to mobilize within tanker: "Of course, we want to be part of it"
The tanker market has adjusted more rapidly than expected. Maersk Broker therefore wishes to expand business within tanker, requiring a strengthening of the organization, say top executives in an interview with ShippingWatch.
One alternative fuel may be particularly dangerous
In a new study – which Maersk, Shell, Euronav and MSC Ship Management, among others, are behind – the new alternative fuels are ranked based on how dangerous they are. The industry has to be careful with one of them, in particular.
Dan-Bunkering achieves billion-dollar revenue – set to focus on new acquisitions
Dan-Bunkering, part of fuel supplier Bunker Holding, last year saw a significant boost in revenue, with earnings coming in more flat. The bunker company will focus on mergers and acquisitions.
Analyst firm seeing signs of weakening container spot rates
Spot rates on the container market have declined in the past two weeks. The likelihood of a bigger drop in rates has increased, according to Sea-Intelligence.
Senior Legal Counsel with a focus on Offshore Renewables 
Head of Vessel Operations 
IT Operations & Project Lead 
Senior Sales Manager 
Head of Airfreight 
Crewing officer 
Safety Leadership & Transformation Manager