Big Projects Struggle at Low Oil Mark

High-cost energy projects globally will struggle to stay profitable if crude oil prices stay around $80 a barrel to $85 a barrel and some proposed developments may be shelved, according to Oil Search Ltd.

“The bottom line is that much of the industry around the world needs $80, $85 consistently to provide returns,” Managing Director Peter Botten said. “If it stays at that level, marginal projects will struggle, and eventually production will adjust.”