Oil And Gas Industry To Cut $1 Trillion In Spending After Price Slump

The oil and gas industry will cut US$1 trillion from planned spending on exploration and development because of the slump in prices, leading to slower growth in production, according to consultant Wood Mackenzie.

Worldwide investment in the development of oil and gas resources from 2015 to 2020 will be 22 per cent, or $740 billion, lower than anticipated before prices plunged in 2014, with the deepest cuts in the US, Wood Mackenzie said in a report Wednesday. A further $300bn will be eliminated from exploration spending. Global production this year will be 3 per cent lower than previously forecast, the consultant said.“The impact of falling oil prices on global upstream development spend has been enormous,” Malcolm Dickson, principal analyst at Wood Mackenzie, said in the report. “Companies have responded to the fall by deferring or cancelling projects” in virtually every oil-producing country, he said.

https://oilguru.org/2016/06/15/oil-and-gas-industry-to-cut-1-trillion-in-spending-after-price-slump/