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
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Where are we at the beginning of 2017?
- Where does currency effect fit in?
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Where do costs go from here?
- Opex
- Drilling
- EPC
- Subsea
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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:
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Project FIDsIndicative 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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