Insight
Are North Sea cost reductions here to stay?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
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.
Table of contents
- 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?
Tables and charts
This report includes the following images and tables:
- Project FIDs
- Indicative supply chain unit cost movement by category (Jan. 2015 base)
- Breakdown of typical capex reduction (2014 base level)
- Breakdown of opex per barrel reduction (2014 base level)
- Subsea tree demand by FID year
What's included
This report contains:
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