The fall in cost of equipment and services as well as cost
optimizations by E&P companies have translated into a steep lowering of the
project breakeven points in deepwater plays
It is noticed that in 2014, only around 7 billion boe of reserves were viable at $ 60/bbl but this figure has now gone up to 15 billion boe
The US tight oil curve continues to be significantly below the deepwater curve and this explains the uptick in investments in the US subsequent to the recent oil price rally
Assuming, a 20% capex cut on the current deepwater cost curve, deepwater production is below the US tight oil cost curve for about 15 billion boe of of crude.
It is noticed that in 2014, only around 7 billion boe of reserves were viable at $ 60/bbl but this figure has now gone up to 15 billion boe
The US tight oil curve continues to be significantly below the deepwater curve and this explains the uptick in investments in the US subsequent to the recent oil price rally
Assuming, a 20% capex cut on the current deepwater cost curve, deepwater production is below the US tight oil cost curve for about 15 billion boe of of crude.
Source: Indian PetroPlus
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