(Energy Analytics Institute, Pietro D. Pitts, 1.Oct.2015) – Due to the fall in oil prices, all of the oil companies and governments have experienced a strong negative impact to their cash flow.
As such, the investment capacity of all the actors has declined enormously and a lot of large projects are being canceled and new projects are not taking off, said Arnold Volkenborn, a petroleum engineer and Venezuela petroleum sector expert who currently sits on the Board of Directors at Siderurgica Venezolana S.A., during a forum at Fermin Toro Institute in Caracas, Venezuela.
“The large oil companies are reducing their investments to the tune of 20 to 40 percent, which is very significant. Despite declines in oil prices, large projects in execution don’t normally stop.”
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