Operators need to chop between 20 percent 30 percent on new projects, trimming budgets throughout the supply chain and services sector – double what analysts say must be squeezed out on average. Instead of focusing on cuts, operators must delve into project optimization, efficiencies and smarter ways of doing more with less. Wood Mackenzie’s analysis estimates that $1.5 trillion of uncommitted spending on new conventional projects and North American unconventional oil is uneconomic at $50 per barrel. Investment in the upstream is actually down by $220 billion in 2015 and 2016, compared to pre-oil price crash projections. A reduction of 46 onshore North American projects have been deferred. “We estimate that as much as $1.5 trillion of investment spend destined for new (pre-sanctioned) and U.S. tight oil projects is now out of the money, or in the starter […]