• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 6 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 min CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 10 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 5 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 4 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 9 hours NordStream2
  • 4 days Modest drop in oil price: SPRs vs US crude inventory build
  • 4 days 2019 - Attack on Saudi Oil Facilities.
  • 4 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 6 days Ukrainian Maidan after 8 years
  • 6 days Peak oil - demand vs production

Breaking News:

Expect Cheaper Gasoline This Week

Norwegian Oil And Gas To See A $50 Billion Cut In Investment

The Norwegian oil and gas industry will see $50 billion less in capital investment from 2016-2020 than previously forecasted as a result of cancelled or delayed projects, according to a study by industry consulting firm Wood Mackenzie.

"Companies are seeking lower cost solutions, be that from cheaper market rates, or different development options," Malcolm Dickson, principal analyst for Upstream Oil and Gas at Wood Mackenzie told World Oil earlier this week.

Ten projects on the Norwegian Continental Shelf have been shelved, the authors of the study found, and an additional three billion barrels worth of projects have been stuck at the pre-final investment decision (FID) phase, waiting for official sanction.

"Mid-2017 is the bottom if you believe in oil price recovery, as we do,” Dickson said. "That means that cost inflation will begin to creep into fields from 2018 onwards. FID in the next year or so would make sense to capture lower costs.”

Dickson added that many of the proposed projects have breakeven price points in excess of $50 a barrel, meaning simplification, standardization and optimization will be essential to ensure new endeavors are profitable.

"We can’t change the oil price, but we can look to bring costs in line with it,” the analyst said. "The most prevalent type of optimization has been simplification of projects, such as moving to lower cost drilling techniques, scaling down vessel specification and moving from large platforms to subsea.”

The Norwegian government has recently been ramping up a campaign to ensure the country becomes carbon neutral by the year 2030.

The electric car market will be one of the sectors to benefit from the new program as “lucrative” subsidies from the country’s massive $890 billion sovereign wealth fund will be used to ensure Norway becomes carbon neutral by 2030. The fund also plans to ban gasoline-fueled vehicles and assist impoverished countries in ramping up their environmental efforts, according to officials.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News