Pre-FID projects at risk - can new conventional fields compete with the next wave of tight oil?
The future of yet-to-be-sanctioned greenfield conventional projects is in serious doubt after a tumultuous few years for oil company finances. Stretched balance sheets, marginal project economics and competition for scarce capital from US tight oil mean that many potential developments are at risk of further delay or cancellation. The uncertain outlook for higher cost developments threatens global oil and gas supply and corporate growth next decade. We look at the scale, geographic distribution and economics of greenfield conventional projects.