At an average spend intensity of US$14/boe, deepwater is one of the most capital intensive resource themes. But over the next ten years it delivers a production CAGR of 4%, exceeded only by tight oil (8%) and unconventional gas (6%). Returns for new deepwater projects average 17%, but excluding the pre-salt in Brazil the average falls to 14%. The sector continues to struggle to match onshore cost deflation, and project sanctions face technical and commercial challenges. Unproductive capital to first production (and cash flow) is high. But we believe new deepwater projects will remain an important contributor to the supply mix longer-term.