By Ijeoma Agudosi-Lagos
Analysts have hinted of possible significant abandonment of key oil and projects across the world in 2015 following declining oil prices, according to news monitored by oriental news Nigeria on Friday.
The outlook for both onshore and offshore developments is looking increasingly uncertain with prices plunging by more than 40 percent to about $70 a barrel amid a glut of supply.
Decisions on projects worth $500 billion are set to be made next year, according to Norwegian consultancy Rystad Energy, the equivalent of almost 60 billion barrels of oil but with prices low, at least a third are likely to be cut.
“At $70 a barrel, half of the overall volumes are at risk,” said Per Magnus Nysveen, head of analysis.
Analysts believe this could lead to tighter supplies by the end of the decade. New oil fields typically require four to five years to be developed and billions spent before the first drop of oil is produced.
Last month (November), oil prices tumbled to a four-year low after Saudi Arabia blocked calls to cut production.
The Organisation of the Petroleum Exporting Countries (Opec) accounts for around a third of global oil sales but is dominated by Saudi Arabia.
The Saudis are able to weather lower prices for longer than the likes of Venezuela and Nigeria, which need higher oil prices to support their public finances while Algeria was also said to be in favour of a cut.
Opec’s next meeting is slated for June 2015 even though members could call an interim meeting if the crude price continues to fall.