Insight
Where next for deepwater projects?
Report summary
Is deepwater back after nearly three years in the wilderness? A flurry of FIDs and commercial discoveries appears to be reviving a sector starved of new investment during the downturn. But has it really turned the corner? Deepwater project costs are over 20% lower than mid-2014, but for many this is still not enough. Far greater volumes of US tight oil breakeven at a lower price if compared on a like-for-like basis. However, we see considerable scope for further cost cuts in deepwater, while cost inflation in tight oil has returned with a vengeance. The playing field is about to get a lot more level, and this will strengthen the deepwater value proposition.
Table of contents
- Summary
-
A slow recovery ahead, but a recovery nonetheless
- The high grading effect – the pre-FID deepwater cost-curve
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Deepwater costs need to keep falling
- Where to go next – the Q4 2016 greenfield deepwater project cost-curve now, and minus 20% capex
- Big fish in a smaller pond
- A levelling playing field?
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More hunger please
- Further data and analysis
Tables and charts
This report includes 8 images and tables including:
- Where next for deepwater projects?: Table 1
- Where next for deepwater projects?: Image 3
- Where next for deepwater projects?: Image 4
- Pre-FID oil capex/breakevens by country
- Where next for deepwater projects?: Image 6
- Where next for deepwater projects?: Image 1
- Where next for deepwater projects?: Image 2
- Project appendix: 45 pre-FID deepwater projects
What's included
This report contains:
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