Insight
Pre-FID oil projects: global breakeven analysis and cost curves
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The marginal cost of new supply is one of the critical factors which will determine the future price of oil. We have updated our comprehensive breakeven analysis of future oil developments. These projects are critical for future oil supply and comprise conventional pre-FID projects and future drilling in US onshore Lower 48. Since our January 2016 report, we have seen significant changes to the cost curve. Key findings include: 70% of production from future developments is now commercial at $60/bbl in 2025 Deep/ultra-deepwater projects are hit hardest although cost deflation is evident Since 2009 the advent of tight oil has had the biggest impact on the pre-FID cost curve If prices remain around $50/bbl then most major projects are at risk of deferral or cancellation
Table of contents
-
Breakeven analysis: an update
- 70% of production from future developments is now commercial at US$60/bbl in 2025
- Deep/ultra-deepwater projects are hit hardest, although cost deflation is evident
- Since 2009 the advent of tight oil has had the biggest impact on the cost curve
- If prices remain around $50/bbl then most major conventional projects are at risk of deferral or cancellation
Tables and charts
This report includes the following images and tables:
- Cost curve: cumulative production by breakeven in 2025 – by resource theme
What's included
This report contains:
Other reports you may be interested in
Insight
Global oil cost curves and pre-FID breakevens H1 2025
Deepwater developments are becoming more competitive, driven by new production in Latin America
$6,000
Insight
Value-in-use metallurgical coal costs 2025
We generated VIU cost curves across HCC, SCC and PCI, accounting for quality and market.
$5,000
Asset Report
Kenya
The Argyle-Kenya coal seam gas (CSG) field is located on a structural high called the Undulla Nose.
$3,720
