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.