With 2015 witnessing a material slowdown in investment in new supply and with 2016 likely to be no different, this two-year “hole” in new supply will significantly accentuate a supply shortfall in oil and gas markets, reports UBS. While tracking the global oil and gas industry, Jon Rigby and team point out in their Feb. 2 research report titled “Major projects database update – trouble down the line” that the industry is slowing new investment decisions due to reductions in spending to preserve cash flow, thus protecting balance sheets and dividends.
Crash-stop in new oil and gas project sanctions
Striking a cautionary tone, Rigby and colleagues point out that their firm’s updated database of major projects signals a likelihood of a very significant supply shortfall...
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