The Norwegian oil and gas industry may suffer a dramatic loss in investment

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Cancellation or delay of a number of key project may cost Norway a $50-billion loss in investment from 2016-2020 as compared to what has been previously forecasted, Oilprice.com report citing a study by industry consulting firm Wood Mackenzie.

"Companies are seeking lower cost solutions, be that from cheaper market rates, or different development options," Malcolm Dickson, principal analyst for Upstream Oil and Gas at Wood Mackenzie told World Oil earlier this week.

The authors of the study found that ten projects on the Norwegian Continental Shelf have been shelved. Moreover many projects have breakeven price points in excess of $50 a barrel, which would mean simplification, standardization and optimization.

"We can’t change the oil price, but we can look to bring costs in line with it,” Dickson added. "The most prevalent type of optimization has been simplification of projects, such as moving to lower cost drilling techniques, scaling down vessel specification and moving from large platforms to subsea.”