Oil and gas projects in deep basins account for most of deferred investments worth more than $200 billion made due to the oil price crash.
Oil and gas majors have slashed capital expenditure budgets between 10-15 percent this year in response to oil prices halving over the past year. A large chunk of these cost savings have been made by deferring investment decisions in expensive projects, shelving more than $200 billion worth of investments. .... dentifying 45 major project deferrals across the globe.
As much as 10.6 billion barrels of oil equivalent in resources located in deep or ultra-deep oil and gas projects are affected by the delays, showing projects in frontier areas are worst hit. Canada's oil sands projects make the country most vulnerable to project deferrals, with 5.6 billion barrels of liquid reserves at risk in the country.Related, from Bloomberg/Rigzone:
The deep-ocean strategy is coming back to bite South Korean shipyards.
Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co. -- South Korea’s Big Three shipbuilders -- ventured into offshore oil rigs starting around 2010.
The goal was to avoid direct competition with China, where inexpensive labor could churn out low-profit tankers at cheaper rates. With oil prices climbing toward $100 a barrel, offshore rigs seemed like a savvy bet. Today the strategy seems to have backfired.
Struggling with technology and a plunge in oil prices that has discouraged exploration.
It’s the latest example of difficulties for the global shipbuilding industry, after a glut of vessels and low freight rates have spelled financial trouble for Chinese yards in recent years, prompting them to seek government aid.It takes 6 - 7 years to bring a deep-sea project on-line once decision is made to drill.
Setting us up for $200 oil in 2020.