Oil Price Crash Shifts $150 Billion Investments, LNG Project Impacted.
The oil price crash in 2014 had a big impact on the global economy, leading to canceled investments and spending cuts by oil companies. This decline was expected to shift wealth from oil-producing to oil-consuming countries. A $10 drop in oil price transfers about 0.5% of world GDP from exporters to importers. The drop in oil price also affects big projects in the oil and gas industry, like building a liquefied natural gas (LNG) plant. The researchers analyzed the impact of the oil price fall on the breakeven price for this project.