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Oil investments for USD 200 billion shelved

The oil price is sliding again and is now down to about USD 55 per barrel. This is poison to the energy companies' investments, as the companies have, according to a new assessment, shelved projects for no less than USD 200 billion.

Photo: Gazprom

Not that many months ago, commodity analysts estimated that energy companies around the world had shelved investment projects for about USD 120 billion in total, as the projects were no longer financially viable.

But a new report from consultant agency Wood Mackenzie states that a total of 46 major oil and gas projects, for a total of 20 billion oil equivalents, have been postponed since last summer, when the oil price began its descent, according to an article in Financial Times. The pressure on investments has not decreased lately, and the price has taken another dive, so that the price of North Sea oil now hovers at about USD 55 per barrel.

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