Insight
2015 Gulf of Mexico Deepwater Technical Symposium
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Report summary
Prior to the significant drop in oil prices, costs had trended much higher in deepwater GoM along with an increasing amount of drilling in deeper waters. These trends shows up in higher development costs and value erosion. We share implications of a US$50 Brent price on the region and scenario analysis highlighting the varying impact of reducing costs and improving IP rates on project breakevens.
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