Insight
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.
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 5 images and tables including:
- 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:
Other reports you may be interested in
Asset Report
Peon
Peon is a gas field located in the Norwegian Northern North Sea, around 60 kilometres north west of Gjøa and 30 kilometres north ...
$3,100
Asset Report
Nevis Complex
Nevis Complex comprises five mature oil and gas fields which are exported via the nearby Beryl facilities in the Northern North Sea. ...
$3,100
Asset Report
Norway other fields (sub-commercial) North Sea
Data on the fields we currently classify as sub-commercial are available below. Sub-commercial fields contain hydrocarbon volumes that ...
$4,400
