(CNN) New oil and gas production projects worth $1.5 trillion are at risk because of plunging prices. Research firm Wood Mackenzie said the planned projects are unlikely to go ahead because they’re uneconomic at current prices of less than $50 a barrel.
“In addition to reduced activity onshore North America, a total of 46 projects have been deferred as a result of the oil price fall,” said James Webb, the firm’s research manager for oil and gas exploration and production.
Oil and gas groups have already cut investment for this year and next by $220 billion, compared to the firm’s forecasts before prices started collapsing in 2014.
But Wood Mackenzie warned the cuts do not go far enough, and many more investment plans will have to be scrapped.
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