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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
What's included?
This report includes 1 file(s)
PreFID oil projects global breakeven analysis and cost curves June 2016.pdf PDF - 885.96 KB
Description
This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.
This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.
Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.
Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
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Insight | Jul 2016
Pre-FID oil projects: global breakeven analysis and cost curves
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