Posted on 12/14/2014 7:34:21 PM PST by Lorianne
Dozens of new oil projects in the North Sea and Europe could be shelved as falling prices force international oil companies to tear up their investment plans.
Global energy consultancy Wood Mackenzie has said that 32 potential European oil field developments containing 4.9bn barrels of oil equivalent are waiting for approval on more than $87bn (£55bn) of funding. These could be at risk should oil prices fall below $60 per barrel.
“Major projects and investment in the UK and across Continental and Mediterranean Europe could be at risk if prices stay below $80 per barrel, as over 70pc of the pre-FID [final investment decision] reserves in each region have a break-even [price] in excess of $60 per barrel,” James Webb, lead analyst for Continental and Mediterranean Europe upstream research at Wood Mackenzie, told The Sunday Telegraph.
“Whereas in Norway almost 80pc of reserves require an oil price of less than $60 per barrel to break even,” he said.
Norway’s output is expected to increase by 50,000 barrels per day (bpd) to average almost 1.9m bpd in 2014, despite the recent slump in prices.
(Excerpt) Read more at telegraph.co.uk ...
More like a hiatus...
Perhaps the answer to this for the U.S. is for the federal government to give a tax credit for oil production in the United States only for oil that was consumed in the United States. This tax credit would essentially set a stable minimum price within our country. This would shield our producers and serve our national security interests by using our own oil instead of buying it from our enemies.
It’s being reported all over the Houston media that this will hurt Texas.
Well just damn. All I know is it cost me 20 dollars less to fill my tank today than it has since I can’t remember. Here we are with a chance to break away from dependence on muzzie oil and they’re gonna throw it away because the ridiculous profits won’t be there right off the bat? It’ll go back up. They’ll get their sweat and blood from us all.
We really, really need to have sources other than the muzzies for our oil. It’s a huge strategic move.
Easier move would be to pull ALL American troops out of the Middle East and tell the world, “We gave Israel nukes. They can deal with it.”
NO!!!
No additional governmental picking of winners and losers in the market.
There is no reason to take money from tax payers and give it to parts of another.
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