Global upstream costs: will the savings stick?

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Will this downturn be different for upstream operators and the supply chain? Are the majority of the cost savings made in 2014-17 structural and here to stay – or cyclical and set to erode as the oil price increases? Since 2014, we have removed almost US$1 trillion of upstream capital expenditure from our estimates for 2015-20 – the result of project deferrals, supply chain deflation and optimisation. The US onshore industry shows how quickly cost inflation returns when the market recovers, yet also how important efficiency and productivity gains can be. Across the globe, part of the savings will undoubtedly stick. But how much and for how long?

Table of contents

Tables and charts

This report includes 10 images and tables including:

  • Global upstream development capex, 2014-20 (by PRMS classification)
  • US Lower 48 capex, 2014-20 (by region)
  • US Lower 48 horizontal oil rig count, 2014-17
  • Observed and expected cost deflation, 2015-18 (Wood Mackenzie cost surveys)
  • Observed/expected opex deflation, 2015-18
  • Operating costs index, 2014-20
  • Deepwater drilling: rig market, 2014-20
  • Deepwater drilling: rig rate trends, 2014-20
  • Subsea market: tree awards and cost trends, 2013-20

What's included

This report contains:

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    Global upstream costs: will the savings stick?

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