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12/5/2014

More than $150 billion of oil projects to face axe in 2015 - The Economic Times
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More than $150 billion of oil projects to


face axe in 2015
21 com m ents | Post a Com m ent

By Reuters | 5 Dec, 2014, 01.28PM IST

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LONDON: Global oil and gas exploration


projects worth more than $150 billion are
likely to be put on hold next year as plunging
oil prices render them uneconomic, data
shows, potentially curbing supplies by the
end of the decade.

Cutbacks in oil production bodes ill for cos that are struggling
to replace depleting reserves as exploration becomes harder &

discoveries smaller.
As big oil fields that were discovered
Like Share You, Vyshnavi Nair and 3,040,418 others
like this.
decades ago begin to deplete, oil
companies are trying to access more
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complex and hard to reach fields located in
investments
some cases deep under sea level. But at the
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sharply given the rising cost of raw materials
and the need for expensive newSlideshows
technology to
reach the oil.

Now the outlook for onshore and offshore developments - from the Barents Sea to the Gulf or
Mexico - looks as uncertain as the price of oil, which has plunged by 40 percent in the last
five months to around $70 a barrel.

Large and mid-cap stocks that


rise when oil prices fall
Past trend of the stock market's
performance due to change in crude oil
prices shows Indian equities tend to do
better every time the prices weaken.
By 2030, Nifty will hit 1,25,000, says
Rakesh Jhunjhunwala
Retail interest drives Mid and Smallcap
indices to new highs

Next year companies will make final investment decisions (FIDs) on a total of 800 oil and
gas projects worth $500 billion and totalling nearly 60 billion barrels of oil equivalent,
according to data from Norwegian consultancy Rystad Energy.

BJP Karnataka plans Twitter


4 IIT-Kanpur students turn
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down
Rs
1
crore
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map over 60 yrs afte
But with analysts forecasting oil to average $82.50 a barrel next year, around one third of the

The BJP has worked out a strategy to use


The offer was for a take home of close to
It was recently added to the
spending, or a fifth of the volume, is unlikely to be approved, head of analysis at Rystad
the very same weapons that Siddaramaiah Rs 93 lakh per annum. Along with other
railway map with Prime Mini

Energy
Perinternet
Magnus
Nysveen
said. incentives and perks, the size of the
has opted
for, the
and
the
smartphone.
package was more than Rs 1 crore yearly.

Modi flagging off a first pass


northeastern state.

"Atministers
$70 a barrel,
of the
overall volumes
are atstart
risk,"
said.note at new
Union
may behalf
asked
to visit
Placements
onhe
a high
7 iPhone-only apps that w
Kashmir valley every month
IITs, 60% at IIT Mandi placed already
Android users jealous
BJP gains in polls after every riot, says
IIT graduates prefer new-age jobs to
A lowdown on everything
for FID in 2015
YaleAround
study one third of the projects scheduled
core engineering
ones are so-called unconventional,
knows about you
where oil and gas are extracted using horizontal drilling, in what is known as fracking, or
mining.
Of those 20 billion barrels, around half are located in Canada's oil sands and Venezuela's tar

http://economictimes.indiatimes.com/news/international/business/more-than-150-billion-of-oil-projects-to-face-axe-in-2015/articleshow/45382213.cms

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12/5/2014

More than $150 billion of oil projects to face axe in 2015 - The Economic Times

sands, according to Nysveen.

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Geographically, the projects on the balance are widespread.

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Chevron's North Sea Rosebank project is among those with a shaky future and a decision
on whether to go ahead with it will likely be pushed late into 2015 as the company assesses
its economics, analysts said.
"This project was not deemed economic at $100 a barrel so at current levels it is clearly a
no-go," said Bertrand Hodee, research analyst at Paris-Based Raymond James. He
estimates a development cost of $10 billion for Rosebank, with potential reserves of 300
million barrels - meaning the Chevron would only recoup $33 a barrel.

Recom m end 22 people recommend this. Be the first of your


friends.

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More than $150 billion of oil projects to face axe in 2015 - The Economic Times

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As the cost crude keeps dropping, other projects which have a break even of $ 80/- and
above are facing tough decisions. When world wide the cost of a barrel of oil rose to $

Agree (0)

140/- many projects for producing oil came into existence, but now with falling prices,
many may be shelved for a decade or so. Some of the projects may be taken up after 15
or 20 years, depending on the market conditions then. When the dependence on Gulf
Oil was reduced considerably, the Arabs are no longer in a position to dictate terms. In

Recommend (0)

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the bargain, Russia has turned out to be big loser.

Anim esh P (Bangalore)


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wha'll happen to mid-east countries?

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Ashish (Pune)
234 Follow ers

Platinum : 24.4K
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Am happy oil prices are down from India's point of view.. Would have been more happy if
the rupee was above $60.. Still some thing is better than nothing..

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sex toys in India

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Ali Asgar (Pune)


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As big oil fields that were discovered decades ago begin to deplete, oil companies are
trying to access more complex and hard to reach fields located in some cases deep

Agree (0)

under sea level.

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bad news for oil companies

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Sunash Aggarw al (Delhi)


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Bad news

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More than $150 billion of oil projects to face axe in 2015 - The Economic Times
Nilaydas (Mumbai)
57 Follow ers

Gold: 10.7K

This will create serious economic downturn. Business of production and service

Agree (0)

companies will be in low momentum. Steel, labour cost will drop further.

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Pussycat Pussycat (AZ)


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Many project will not find funding or go slow. But depressed time is the best to explore
since you will get equipment at depressed prices.

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SNRK R (Mumbai) Replies To Pussycat Pussycat


136 Follow ers

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Thats what any smart businessmen or investors will do.

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Ssundararam an20 Sundararam an (Mumbai)


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When do we see the utmost corrupt... highly protecting powers of the Income tAx officials

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on the stinkingly rich ... and keep hitting hitting again and again on the the middle class
salaried.. or pensioners.... to stifle their commenting voices in public domain.. against

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the govt... and its cruel worst possible extended arms of the Income Tax Dept... to
silence natural innate voices... ??? Gok

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Gyan Rohra (Baroda India)


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We in India should not decrease our attention, to finding ways and means to get

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affordable sustainable energy. The easy availability of fossil fuels is not going to last
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Indian Thinker (India)


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this is bad news I am afraid. Oil price reduction is down to two things 1) demand

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destruction, the world cannot afford 100 dollar a barrel OIL 2) supply increase. But if
shale OIL is expensive, I wonder where that leaves the world which cannot afford 100

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dollar a barrel OIL. Many Shale projects will become unviable. And as this article
mentions, even if existing projects continue, new projects will be delayed.

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Rahul Gupta (Lucknow )


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Its time the Indian government rise on this issue and also make a killing by asking the

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explorers guaranteeing them returns commensurate with their efforts in this area

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Avnish Kum ar (Ghaziabad U.P. INdia)


68 Follow ers

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LONDON: Global oil and gas exploration projects worth more than $150 billion are likely
to be put on hold next year as plunging oil prices render them uneconomic, data shows,

Agree (0)

potentially curbing supplies by the end of the decade.

Recommend (0)

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More than $150 billion of oil projects to face axe in 2015 - The Economic Times
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Lakshm inarayanan Srinivasan (GUJARAT)


51 Follow ers

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Oil is in no hurry to go to US % 100 levels any time soon. With Saudi's firm on ensuring

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no production cuts to suffocate Russia and delay Shale gas, oil is likely to remain
around 70 to 80 $ levels. Many of the new developments are likely to get delayed.

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SNRK R (Mumbai) Replies To Lakshm inarayanan Srinivasan


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True. Anyways low oil price will allow India to grow in many other

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dimensions.

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The Dust Buster (Mars)


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Its time the Indian government rise on this issue and also make a killing by asking the

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explorers guaranteeing them returns commensurate with their efforts in this area !

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Manish Bhatt (Delhi)


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I think Companies should Consider making Oil out of Carbon dioxide. ..and Water; and

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Sunlight of course which is still Free. (May be Vertical Forests! ..or Creepers in the Sky.
and Why wait for Trees to Bury and Die, Make Oil like that. ..Rubber Tree!)

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Jayeshkum ar Panchal (India)


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I think Companies should Consider making Oil out of Carbon dioxide. ..and Water; and

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Jayeshkum ar Panchal (India) Replies To Jayeshkum ar Panchal


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. ..even the Dead Bodies. We are All the Children of the Carbon Cycle.
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