ShippingWatch

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.

Read the whole article

Get 14 days free access.

No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

Several factors explain the plummeting dry bulk rates

Dry bulk rates have taken an unusual dive at the beginning of 2022. Most recently, the Baltic Dry Index dipped by 4 percent Friday. Several factors have triggered a ”panic in the market,” an analyst explains to ShippingWatch.

Further reading

Related articles

Latest news

See all jobs