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Wood Mackenzie: Oil price makes half of all future projects unprofitable

The plummeting oil price places the future production under severe pressure. In a new report, consulting firm Wood Mackenzie notes that upwards of 50 percent of the future oil projects will be unprofitable at an oil price of USD 60 per barrel.

Photo: Statoil

Half of all the oil production from future developments will be uneconomic with an oil price of USD 60 (Brent) per barrel, concludes consulting firm Wood Mackenzie in a new break-even analysis of future oil development projects.

The analysis covers conventional projects which have yet to receive final investment decision (pre-FID) as well as future drilling in US onshore projects, which are a crucial factor in terms of the future supply of oil.

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