News Column

PRESS: Crude Prices Putting Billions In Oil Investments At Risk - Reuters

August 14, 2014

Sam Unsted

LONDON (Alliance News) - More than half a trillion dollars in investments in major oil projects over the coming decade are at risk from high costs and low crude oil prices, according to a report by Carbon Tracker Initiative, Reuters reported Friday.

In order to meet anticipated future demand, companies like BP PLC, Chevron Corporation and Eni SpA are spending billions in order to extract harder-to-access oil reserves, including from Canadian oil sands and below the Arctic ocean.

But the profitability or even the start of production for many of these projects is dependent on crude oil prices moving higher, CTI said, adding some of the plans may be cancelled or deferred in order to avoid wasting capital or harming shareholder value, reported Reuters.

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Source: Alliance News

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