Thursday 18 December 2014

Bankers See $1 Trillion of Zombie Investments Stranded in the Oil Fields - Bloomberg

Bankers See $1 Trillion of Zombie Investments Stranded in the Oil Fields - Bloomberg:



"There are zombies in the oil fields.



After crude prices dropped 49 percent in six months, oil projects planned for next year are the undead -- still standing upright, but with little hope of a productive future. These zombie projects proliferate in expensive Arctic oil, deepwater-drilling regions and tar sands from Canada to Venezuela.



In a stunning analysis this week, Goldman Sachs found almost $1 trillion in investments in future oil projects at risk. They looked at 400 of the world’s largest new oil and gas fields -- excluding U.S. shale -- and found projects representing $930 billion of future investment that are no longer profitable with Brent crude at $70. In the U.S., the shale-oil party isn’t over yet, but zombies are beginning to crash it."



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