Saudi Aramco shuts down deepwater oil and gas exploration projects
February 1, 2015 | By
Doug Peeples
While it will not make North American and other oil companies struggling with low oil prices and spending cuts feel any better, Saudi Aramco -- considered the world's largest oil company -- has suspended its deepwater oil and gas exploration projects in the Red Sea. The national company, which has the world's largest confirmed oil reserves and the highest rate of production at 12.5 million barrels per day, has for now stopped its deepwater exploration and drilling because of high costs and today's low crude oil prices, although it is expected to continue with other projects such as unconventional shale gas investment and development, a Reuters article reported. Earlier steps at economizing included asking service providers affiliated with the deepwater projects for discounts on goods and services, and calling a halt to a clean fuels project last month. Saudi Aramco's Red Sea deepwater projects were costing the company about $1 million a day, according to unidentified sources, Reuters said. Another source said environmental and risk-related issues also contributed to the decision. The company announced in late January that it expects to invest $7 billion in the shale gas projects, which it said the world will need because population growth coupled with increasing demand will continue to rely on oil and gas. For more:
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