Oil sands and the Arctic are most expensive resources

Rystad Energy estimates that oil sands and the Arctic continue to be the most expensive resources, with an average breakeven price of US$ 75-80/boe.

The attractiveness of the resources has declined over the past years, mainly as a result of the North American shale boom. The break-even price of North American shale is estimated at an average of US$ 60-70/boe.

Offshore resources remain competitive, with lower break-even prices than US and Canadian shale developments (ultra-deepwater at US$ 55-60/boe; deepwater at US$ 50-55/boe and offshore shelf at US$ 40-45/boe).

Comments

Espen Erlingsen, Senior Analyst at Rystad Energy, commented: “Though offshore projects have recently experienced a slowdown in investment levels, this decline is part of a natural cycle, and activity levels are expected to increase again. Both deepwater and ultra-deepwater are necessary to develop in order to meet our demand outlook of around 100 million boepd in 2020.”

Rystad Energy’s demand outlook is just above IEA’s demand outlook of 98 million boepd in 2020.

Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13062014/oil_sands_and_arctic_resources_more_expensive_than_shale_836/