Insight
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7 Pages

Are North Sea cost reductions here to stay?


Are North Sea cost reductions here to stay?

Report summary

The oil price drop in 2014 was a major reality check for the North Sea. But by some measures at least, the industry has reacted remarkably well. Country level opex per barrel has dropped 40% in the UK and 30% in Norway. Capex per barrel has reduced by up to 50% in some pre-FID projects.

Operators have achieved savings through a combination of supply chain deflation, project optimisation and efficiencies. This report addresses how much can be sustained as oil prices and activity rise.


What's included?

This report includes 1 file(s)

  • Are North Sea cost reductions here to stay? PDF - 352.96 KB 7 Pages, 1 Tables, 4 Figures

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.

  • Executive summary
  • Where are we at the beginning of 2017?
    • Where does currency effect fit in?
  • Where do costs go from here?
    • Opex
    • Drilling
    • EPC
    • Subsea
  • Collaboration is key to keeping costs lower for longer
    • What's the outlook for the supply chain?
  • So, is 2017 the year to invest in the North Sea?

In this report there are 5 tables or charts, including:

  • Executive summary
  • Where are we at the beginning of 2017?
  • Where do costs go from here?
    • Project FIDs
    • Indicative supply chain unit cost movement by category (Jan. 2015 base)
    • Breakdown of opex per barrel reduction (2014 base level)
    • Subsea tree demand by FID year
  • Collaboration is key to keeping costs lower for longer
    • Breakdown of typical capex reduction (2014 base level)
  • So, is 2017 the year to invest in the North Sea?
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