Algeria Oil Min: Deepwater Not Economically Viable at Current Price

Ultra-deepwater fields offshore Brazil are not economically viable at the current oil price, said the Algerian Oil Minister Chakib Khelil on Tuesday, according to Dow Jones. The Brazilian projects will only be commercially viable if oil prices climb to $70 to $80 a barrel.

He said that countries, such as Brazil, that require an investment of "hundreds of billions of dollars in deep offshore" to develop massive reserves, will not make these financial commitments unless oil prices increase.

Khelil added that Canada will not invest in developing its tar sands without an increase in commodity prices.