Insight
Upstream Cost Deflation: How much could costs of exploration fall?
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Report summary
Costs of exploration are falling as the industry adjusts to its new price environment. Many explorers have reacted by simply spending less. But what they really need is lower costs.
Table of contents
- Costs of exploration are falling and have further to go
- The industry expects its like-for-like costs to fall by 15% to 25%
- Simplification could save a further 5%
- And efficiency gains could save another 5%
- US dollar strength a locally important factor
- Full deflation could reach 33% by 2016
- Lower costs will soften the blow of exploration budget cuts
- Cheaper, simpler and more efficient
Tables and charts
This report includes 3 images and tables including:
- Service sector margins
- Potential impact of US dollar appreciation
- Announced exploration budgets, ranked by 2015 versus 2014 delta, and potential impact on activity
What's included
This report contains:
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