Wood Mackenzie: ‘Oil projects risk being scrapped at current prices’

Irish-linked exploration stocks wavered yesterday after leading international energy research and consultancy group Wood Mackenzie warned most major conventional oil projects risk being delayed or cancelled if global prices remain at or below $50 a barrel.

Brent crude was down by well over 4% at $46.22 yesterday and the International Energy Agency said the oil stock overhang threatens any real price recovery.

Global upstream and exploration spending has already dropped by more than $1 trillion since the start of the oil price slump in mid-2014, as cash-strapped oil companies tightened their purses, according to Wood Mackenzie.