Oil majors Delay oil projects totalling ~$400 bn of spending -deepwater projects most affected
Oil majors have cut spending & jobs as oil prices have plunged.
Wood Mackenzie has estimated that deferred capital spending amounts to ~$400 bn or 2.9m barrels of oil per day ( equivalents to Kuwait’s oil production)
2/3rd of the deferrals of spending relate to deep water and oil sand developments, that have higher cost of development. Many of the blocks that have been deferred have high upfront capex and high break-even points (typically around ~ $68/ barrel ). These include blocks in Arctic, Kazakhstan (Kashagan) and Gulf of Mexico.