Product Code: 615-16
Douglas-Westwood (DW) has reviewed over 250 upstream capital projects sanctioned in the last four years to examine how development costs have changed before and after the oil price downturn. Preceding the oil price downturn, were growing concerns over the viability of some deepwater and arctic projects as a result of the unsustainable rise in development costs. This has been greatly exacerbated by sustained low oil prices, with lasting impact in all upstream sectors including the Canadian oil sands, US shale, shallow water and conventional onshore developments.
With a record number of developments at a pre-FID stage, DW's research examines the average spend per barrel-recovered for newly-sanctioned projects. Re-engineering, cost deflation and standardisation are all serving to reduce the oil price threshold at which projects become economically viable. Using our cost/component data, DW has also considered a hypothetical offshore project to show the principle segmentation of spend and how this varies over time. In this new price environment, our analysis of global upstream projects shows development Capex per barrel for deepwater projects decreased substantially by 41% over the 2012 to 2016 period, whilst US Shale D&C cost per barrel also declined 36% over the same period.
Why purchase the DW250 - Capital Cost Briefing?
The ‘DW250 - Capital Cost Briefing’ examines trends in development costs in the upstream industry, with segmented analysis on deepwater, shallow water, oil sands, conventional onshore and the US unconventional industry, supported by analysis, insight and industry consultation.
The report is essential for financial institutions, equipment manufacturers, offshore construction companies, drilling operators, oilfield services companies, shipbuilders and oil & gas companies wanting to better understand historic market trends and where to make informed investment decisions.
Our proven approach includes:
- Unique and proprietary data - updated year-round from published sources and insight gained from industry consultation.
- Detailed methodology - the report uses research from DW's Global Upstream Database', an in-house information system exclusive to DW. Our global analyst team is involved in the gathering and analysis of the upstream market data through primary research and professional networks. A project-by-project review of development prospects drives a data-rich market model.
- Concise report layout - consistent with DW's commitment to delivering value for our clients, all our market forecasts have a concise layout consisting of industry background and supporting materials condensed to enable quick review.
Table of Contents
- Summary & Conclusions
- Barrel Breakdown
- Offshore Cost Variation
- Offshore Projects Economics
- Conventional Onshore Project Economics
- US Unconventional
- Canadian Oil Sands
- Offshore Vs Conventional Onshore
- Deepwater Vs Shale
- Offshore Sanctioning
- US Land Drilling Rig Market
- Delays and Cost Overrun
- Operator Analysis
- US Unconventional Operator Analysis
List of Figures:
- Figure 1: Cost per Barrel Index
- Figure 2: U.S Shale Average Production Cost Breakdown per Barrel
- Figure 3: Global Average Production Cost Breakdown per Barrel
- Figure 4: Offshore Development Capex per Barrel
- Figure 5: Average Cost of a 10 Well Subsea Tieback Across Three Timeframes
- Figure 6: Onshore Development Capex per Barrel
- Figure 7: US Shale Basins D&C Cost per Barrel
- Figure 8: Development Cost of Specific Oil Sands Projects
- Figure 9: Offshore/0nshore Capex per Barrel 2012-2016
- Figure 10: Deepwater/Shale Cost per Barrel 2012-2016
- Figure 11: Visible Offshore Projects Sanctioned, 2012-2016
- Figure 12: Visible Onshore Projects Sanctioned, 2012-2016
- Figure 13: United States - Rig Fleet and Drilling Utilisation
- Figure 14: Cost Reductions by 0peratorin 20l5-2016 Compared to 2012-2014
- Figure 15: Cost Reductions by Operator in 20l5-2016 Compared to 2012-2014
List of Tables:
- Table 1: Average 0ffehore Development Capex per Barrel ($)
- Table 2: Average Development Capex per Barrel by Development Type ($)
- Table 3: Average Cost of a l0 Well Subsea Tieback Across Three Timeframes
- Table 4: Average inshore Development Capex per Barrel ($)
- Table 5: Average D&C / EUR ($)
- Table 6: Status of Current Canadian Oil Sand Projects
- Table 7: 0ffehore/Onshore Capex per Barrel 2012-2016($)
- Table 8: Deepwater/Shale Cost per Barrel 2012-2016($)
- Table 9: Projects Sanctioned by Type 2012-2016
- Table 10: Projects Sanctioned by Water Depth 2012-2016
- Table 11: Index of0nshore Projects Sanctioned, 2012-2016
- Table 12: United States - Rig Fleet and Implied Utilization
- Table 13: Fields with Delays and Cost Overruns
- Table 14: Reengineered Fields