The oil price fall has major implications for project sanction and near-term investment levels in the Caspian. Wood Mackenzie estimates that total capital expenditure to 2020 will exceed US$120 billion in the region. With short-term revenues under threat, some pre-sanction projects could be postponed or even shelved. Based on our long-term Brent assumption, onstream developments should not be affected. Operators will instead focus on achieving efficiencies and reducing operating expenditures.