GLOBAL $200 BLN DOWN
Global oil and natural-gas producers have delayed $200 billion of investment in more than 45 projects following the slump in crude prices, according to Wood Mackenzie.
The deferrals "create a substantial hole in the industry's investment pipeline," accounting for about 20 billion bbl of reserves, the Edinburgh-based researcher said in an e-mailed report.
Brent crude prices have dropped by half in a year after the Organization of Petroleum Exporting Countries (OPEC) decided to maintain output to defend market share amid a global supply glut.
More than 50% of the affected reserves are in deep-water projects, while almost 30% are in Canadian oil sands, the report showed.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.