A comprehensive Rystad Energy analysis of oil production costs has revealed that the average breakeven price for all unsanctioned projects has dropped to around $50 per barrel, down around 10% over the last two years, and 35% since 2014. This means that oil is much cheaper to produce now compared to six years ago, with the clear cost savings winner being new offshore deepwater developments. Our cost of supply curve for liquids now reveals that the required oil price for producing 100 million barrels per day (bpd) in 2025 has been in continuous decline in recent years, with our updated projection showing that an oil price of only $50 per barrel is needed to keep oil production at this level. Previously, in 2014, we had estimated that the required oil price for producing 100 million barrels per day in 2025 was close to $90 per barrel, an estimate which […]