Oil project economics
Project costs for oil companies spiked last year around the same time as oil prices hit $147 per barrel. However, while costs have since fallen, they have not dropped at the same rate as oil prices. As well as high project development costs, the financial crisis in the fourth quarter of last year produced further problems as credit constraints tightened and many companies found it difficult to find the funding for new projects.
This has prompted a slew of project delays and even cancellations
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