Oil Industry to Cut $1t in Spending

Oil Industry to Cut $1t in SpendingOil Industry to Cut $1t in Spending

The oil and gas industry will cut $1 trillion from planned spending on exploration and development because of the slump in prices, leading to slower growth in production, according to consultant Wood Mackenzie Ltd.

Worldwide investment in the development of oil and gas resources from 2015 to 2020 will be 22%, or $740 billion, lower than anticipated before prices plunged in 2014, with the deepest cuts in the US, Bloomberg reported.

A further $300 billion will be eliminated from exploration spending. Global production this year will be 3% lower than previously forecast, the consultant said.