Rystad: Costs within the upstream sector have come down considerably in 2021 New oil becomes more competitive and significantly cheaper to produce Deepwater and oil sands producers have significantly lowered their breakevens Rystad Energy’s annual cost of supply analysis has revealed that costs within the upstream sector have come down considerably in 2021, making new oil more competitive and significantly cheaper to produce. The average breakeven price for new oil projects has dropped to around $47 per barrel – down around 8% over the past year and 40% since 2014, with offshore deepwater remaining one of the least expensive sources of new supply. Our cost of supply curve for liquids indicates that back in 2014, an oil price of close to $100 per barrel was required to produce 100 million barrels per day (bpd) in 2030. By 2018, the required oil price was closer to $55 per barrel, and […]