Uncertainty Reduces New Oil and Gas Investment

Several news items this week highlight the potential consequences of uncertainty in the energy market.

Fugro scrapped its annual outlook and announced further job cuts, citing an impact from project delays. The company said that projects in the offshore wind and oil and gas markets would be delayed into 2026 and their scope cut back, resulting in an estimated 100 million euros ($117.5 million) impact on its revenue.

"The previously anticipated 20% revenue growth is no longer realistic," Fugro said, adding it saw the most significant impact in the oil and gas market, along with further softening of sentiment in offshore wind.

Meanwhile, a U.S. judge ruled that Orsted can restart work on the nearly finished Revolution Wind project after President Donald Trump's administration halted the project last month. The halt had been costing developers more than $2 million per day.

The effects of market uncertainty have been examined in a newly published study by researchers from the University of Oxford. They demonstrate a significant negative relationship between final investment decisions in oil and gas projects and of energy-related uncertainty and market-based climate policies such as carbon prices.

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