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Cost deflation outlook: upstream sector responds to low oil prices

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Report summary

Development costs are falling, but the deflation will need to go deeper if investment is to start to flow back into the sector at low prices. We estimate that US$1.5 trillion of investment does not break even at US$50/bbl. E&P companies have been pushing the supply chain to reduce costs, but additional measures will be needed to reset the cost base.  

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    Capex Deflation outlook upstream sector responds to low oil prices.pdf

    PDF 3.03 MB

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