The U.S. shale boom shaking the oil industry is changing the way deep-water oil exploration projects are carried out as producers move to scale down these mega-operations, a researcher said Thursday.
A report from consultancy Rystad Energy issued in February pegged the break-even price for U.S. shale oil producers to an average $35 per barrel, Reuters reported.
Producers are reducing the cost of their deep-water projects by making them smaller and producing fewer barrels while trying to remain profitable, he told CNBC`s "Squawk Box".
"It`s not so much innovation, it`s more a change in mind-set," said Wood Mackenzie`s upstream oil and gas research director, Angus Rodger.
Projects in the Gulf of Mexico are leading the way, with breakeven likely moving below $50 per barrel of oil equivalent, down from above $70, potentially giving shale oil a run for its money.
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