Thursday 5 April 2018

Megaprojects Seen Becoming Less Mega as Oil Giants Rein In Costs - Bloomberg

Megaprojects Seen Becoming Less Mega as Oil Giants Rein In Costs - Bloomberg:

"The world’s biggest energy companies are ready for big projects again. They just need to be cheaper this time around. Energy companies will approve spending for about 30 major projects this year, consultancy Wood Mackenzie Ltd. said in an April 5 report. That’s in line with the 32 that were sanctioned last year and more than were approved in 2015 and 2016 combined, when oil prices bottomed out amid a global price crash. Projects launched this year are expected to cost about $2.2 billion each, down from $2.7 billion last year and as high as $9.3 billion in 2009, according to Wood Mackenzie. The average break-even price for this year’s slate of projects, which target reserves of more than 50 million barrels of oil equivalent, will be about $44 a barrel of oil equivalent, down from $52 last year."



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