Dec. 10 (Bloomberg) — A further decline in global oil prices may delay or halt investment in exploration and production projects, according to Fatih Birol, chief economist of the International Energy Agency.
“If prices were to go lower, investments could be delayed or canceled and we would pay the cost in the future,” Birol said today at a conference in Paris. “We could get a supply crunch.”
Birol urged OPEC countries, meeting next week in Algeria, “to consider the fragile situation of the global economy today” and noted the need for $80 oil to ensure the viability of “marginal” production such as deep offshore projects.
