Oil Majors Delay $200 Billion of Spending, Wood Mackenzie Says

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 Ltd.

The deferrals “create a substantial hole in the industry’s investment pipeline,” accounting for about 20 billion barrels 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 decided to maintain output to defend market share amid a global supply glut.

More than 50 percent of the affected reserves are in deep-water projects, while almost 30 percent are in Canadian oil sands, the report showed.

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