Deepwater exploration and production (E&P) activity continues to suffer as operators defer deepwater investment to lower cost, more flexible options such as onshore shale. Struggling to maintain cash flow and balance sheets and facing pressure from investors for lower spending and capital discipline, operators are delaying final investment decisions, especially for costly, long-cycle greenfield projects. So far, 29 of these projects have been delayed. As a result, Wood Mackenzie estimates total reserves of 16 billion barrels of oil equivalent (boe), including 16 billion boe of deepwater reserves and 6 billion boe of shallow water reserves, will be left undeveloped by 2025. The impact on near-term capital expenditure is enormous, with $150 billion in spending affected. Julie Wilson, research director for global exploration at Wood Mackenzie, told attendees at the Offshore Technology Conference (OTC) that countries in the oil prone Golden Triangle and major suppliers of liquefied natural gas, are […]