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The steep fall in energy prices will hit investment in oil and gas projects worldwide and the industry may cancel about US$1-trillion of planned projects globally in the next couple of years, a senior Saudi Aramco executive said on Monday.

“Challenges during down cycles are more complicated today than before…At this moment the global industry is poised to potentially cancel about US$1-trillion in capital funding,” Amin Nasser, senior vice president for upstream operations at the Saudi oil giant, told a conference in Bahrain.

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Speaking to reporters later, Nasser said the US$1-trillion figure included projects that might merely be delayed, not just those that could be canceled outright.

“What we’ve heard from the industry is that there is US$1-trillion of planned projects that will be dropped or deferred over the next couple of years because of what’s happening,” he said, without elaborating on the source of that estimate.