The cost of global oil and gas companies in the upstream (exploration and production), according to calculations of the consulting company Wood Mackenzie, in the next 5 years will decrease by 22% compared to the level that was predicted 2 years ago, before oil prices began to fall.
According to The Financial Times, in monetary terms, the reduction will be about $1 trillion. It is expected that due to the reduction of investment in exploration and production of oil and gas deliveries to the fuel market in 2017 will be reduced by 4%, according to RBC.
Some of the major oil company for 3 years reduced their capital expenditures by almost half. In particular, ExxonMobil has reduced the cost from $42.5 billion in 2013 to $23 billion in 2016. During the same period, Chevron has reduced the costs of exploration and production from $41.9 billion to $25 billion.
According to estimates by Goldman Sachs, if the price of oil set at $55 per barrel, projects with a total cost of $550 billion can be collapsed. The rate of decline in investment will be the fastest in North America.
According to published on 14 June report by the International energy Agency (IEA), by the end of may, the total volume of oil production in the world amounted to 95.4 million barrels a day, which is 590 thousand barrels below the production level a year earlier. The IEA noted that global oil production has significantly decreased since 2013.
