Oil field research has shown investment in oil and gas production is estimated to drop 20% this year.
In comparison to 2014, non-OPEC liquids growth potential of 5.5million bopd (barrels of oil per day) over the next five years has been reduced by more than two million.
Current estimates now stand at 3.3million bopd, according to Rystad Energy.
The research said for every billion dollars being cut in development capex on marginal projects, the production shortfall would amount to 10 thousand bopd.
Rystad Energy’s oil trade analyst Nadia Martin said: “In the longer run, anything below 90 USD/bbl is not sustainable due to this steep but delayed supply response and increasing global base declines, while the cost of new production will remain high.”
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