A few dots near the bottom corner of the world map in the southern Atlantic, the Falkland Islands were once at the forefront of a new era for the oil industry as companies scoured the planet for resources.
\nYet a decade after the discovery of as much as 1.7 billion barrels of crude in surrounding waters, the British overseas territory known for sheep rearing and tension with Argentina looks as remote as ever.
\nRather than the next frontier, the project to extract energy risks being added to a list of what companies call \u201cstranded assets\u201d that could cost them huge sums to mothball, Bloomberg reported.
\nAs the coronavirus ravages economies and cripples demand, European oil majors have made some uncomfortable admissions in recent months: oil and gas worth billions of dollars might never be pumped out of the ground.
\nWith the crisis also hastening a global shift to cleaner energy, fossil fuels will likely be cheaper than expected in the coming decades, while emitting the carbon they contain will get more expensive. These two simple assumptions mean that tapping some fields no longer makes economic sense. BP said on Aug. 4 that it would no longer do any exploration in new countries.
\nThe pandemic will likely discourage exploration, according to Rystad Energy AS. The consultant expects about 10% of the world\u2019s recoverable oil resources\u2014some 125 billion barrels\u2014to become obsolete.<\/p>\n","protected":false},"excerpt":{"rendered":"
A few dots near the bottom corner of the world map in the southern Atlantic, the Falkland Islands were once at the forefront of a new era for the oil industry as companies scoured the planet for resources. Yet a decade after the discovery of as much as 1.7 billion barrels of crude in surrounding […]<\/p>\n","protected":false},"author":1,"featured_media":1743,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[9,15,17],"_links":{"self":[{"href":"https:\/\/balkeen.com\/index.php?rest_route=\/wp\/v2\/posts\/7"}],"collection":[{"href":"https:\/\/balkeen.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/balkeen.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/balkeen.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/balkeen.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7"}],"version-history":[{"count":2,"href":"https:\/\/balkeen.com\/index.php?rest_route=\/wp\/v2\/posts\/7\/revisions"}],"predecessor-version":[{"id":1745,"href":"https:\/\/balkeen.com\/index.php?rest_route=\/wp\/v2\/posts\/7\/revisions\/1745"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/balkeen.com\/index.php?rest_route=\/wp\/v2\/media\/1743"}],"wp:attachment":[{"href":"https:\/\/balkeen.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/balkeen.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/balkeen.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}