News / Business

Oil majors delay $200bn investment amid supply glut

Monday, 27 July 2015 5:13 PM [ Last Update: Monday, 27 July 2015 6:37 PM ]

Pumping Jacks at the Chevron section of the Kern River Oil Field near Bakersfield, California on June 24, 2015. (AFP photo)

Major oil and natural-gas companies around the world have shelved $200 billion of spending on new projects following the slump in crude prices.

According to a report by Wood Mackenzie Ltd., major energy groups have already delayed investment in more than 45 projects.

BP, Anglo-Dutch Royal Dutch Shell, US-based Chevron, Norway's Statoil, and Australia's Woodside Petroleum are among the big names shelving their investment plans.

According to the report, over 50 percent of the affected reserves are in deep-water projects, with nearly 30 percent in Canadian oil sands.

Meanwhile, oil prices started the week in the red, with the US crude for September down 42 cents at $47.72 a barrel.

Also Brent crude for September fell 88 cents to $53.64 a barrel on London’s ICE Futures exchange.

Crude prices have nearly dropped by half since last year after the Organization of Petroleum Exporting Countries (OPEC) decided to keep its output unchanged despite a global supply glut.

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