Major international oil companies have suspended plans for fresh drilling projects following a sharp decline in crude oil prices, raising concerns about investment flows into the energy sector.
Industry sources revealed that several exploration and production programs slated for 2025 and beyond are now being reviewed, as firms adopt a cautious stance in response to the weakening global market.
“The economics no longer support aggressive drilling at current price levels. Companies are prioritizing capital preservation until there’s greater stability,” an industry analyst explained.
Brent crude recently fell below key benchmarks, driven by slower demand growth in Asia, concerns about oversupply, and persistent global economic headwinds. The drop has forced energy giants to reassess cost-intensive operations, particularly in deepwater and frontier exploration zones.
Analysts warn that if the price slump lingers, oil-dependent economies could face revenue shortfalls, while global supply might tighten in the long term due to deferred investments.
Despite the freeze, some companies are reportedly maintaining lower-risk projects and focusing on efficiency improvements to ride out the current downturn.
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