OEF Rapid Review
Pumping crude from deepwater areas is turning cheaper, and an oil price of $50 a barrel could sustain some of these projects by next year. Royal Dutch Shell has already sanctioned its Kaikias deepwater project in the Gulf of Mexico, saying it would break even with prices below $40/b, and BP has decided to move forward with its Mad Dog Phase 2 project also in the Gulf, with costs estimated at $9 billion compared to $20 billion as originally planned. Over the next three years, eight offshore projects may be approved with break-even prices below $50.
LINK TO THE SOURCE ARTICLE:
Deepwater Growth: Up More Than 1 Million Barrels A Day By 2022
