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After $80 Billion Blowouts, Mega Oil and Gas Projects Are Back

  • Energy firms must maintain capital discipline: Wood Mackenzie
  • Cost blowouts lowered returns on projects to 12% from 19%
An offshore oil platform near Niteroi, Rio de Janeiro state, Brazil.

An offshore oil platform near Niteroi, Rio de Janeiro state, Brazil.

Photographer: Dado Galdieri/Bloomberg
Updated on

Investors are about to find out whether the world’s largest oil companies have learned their lesson from $80 billion of cost blowouts in major projects during the era of $100 crude.

From liquefied natural gas in Mozambique to deep-oil in Guyana, the world’s biggest energy companies are gearing up to sanction the first slate of mega-projects since the price crash in 2014, Wood Mackenzie Ltd. analysts including Angus Rodger said in a report. Firms will approve about $300 billion in spending on such ventures in 2019 and 2020, more than in the three years from 2015 to 2017 combined.