December 9 - The dramatic fall in the price of oil is causing major doubts about the viability of many oil and gas projects, says Rystad Energy.
The Norwegian consultancy says that companies are planning to make final investment decisions (FIDs) on a total of 800 oil and gas projects worth USD500 billion, but with analysts forecasting oil to average USD82.50 per barrel next year, around one third of the spending, or a fifth of the volume, is unlikely to be approved.
Even when the price of a barrel of oil was USD120 a barrel, soaring development costs associated with projects in unconventional areas, meant that the economics of some projects around the world were already in serious doubt.
Projects that require expensive and complex extraction techniques, such as Canada's oil sands, are the most unlikely to be given the go ahead.
With the outlook for onshore and offshore developments - from the Barents Sea to the Gulf or Mexico - looking as uncertain as the price of oil, any company involved in oil and gas logistics will be watching developments with great interest.
Anyone with time to spare this evening might want to attend the Rystad Energy Information Session which poses the question: "What are the consequences of OPEC's decision on retaining production levels globally and for the UK?"
It takes place this evening at the Apex City of London Hotel, No. 1 Seething Lane, London EC3N 4AX from 18.15 until 19.45 and is free of charge. Registration starts at 17.30.