Rystad Energy: Oil sands and Arctic most expensive oil resources; NA shale putting on pressure
20 June 2014
Oil and gas consultancy Rystad Energy estimates that oil sands and the Arctic continue to be the most expensive resources, with an average breakeven price of $75-80 per barrel of oil equivalent (boe). The attractiveness of these resources has declined over the past years, mainly as a result of the introduction of North American shale. The break-even price of NA shale is estimated at an average of $60-70/boe.
|Source: Rystad Energy. Click to enlarge.|
Offshore is still in the race with lower break-even prices than US and Canadian shale developments (ultra-deepwater at $55-60/boe; deepwater at $50-55/boe and offshore shelf at $40-45/boe).
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 Ultradeepwater are necessary to develop in order to meet our demand outlook of around 100 million boe/d in 2020.—Espen Erlingsen, Senior Analyst at Rystad Energy
Rystad Energy’s demand outlook is just above IEA’s demand outlook of 98 million boe/d in 2020.
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