Oil price crash: deep cuts in upstream investment
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Table of contents
- Executive summary
- Massive cuts are on the way, but things are different to 2015-16
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Huge capital efficiency gains since the last downturn
- The industry has not underinvested
- The rig count will take time to fall
- Base investment outside the Lower 48 is also under scrutiny
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FIDs at new projects will fall back to 2014-16 levels
- Advantaged deepwater and strategic LNG will remain on the table
- Projects with financially stretched operators and/or weaker economics will flounder
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Already lean exploration budgets will be cut even further
- Costs will be sticky in 2020
- But 2021 could be far more brutal
- Only the very bullish will be looking for countercyclical opportunities
- If operators are hurting, the supply chain will hurt more
Tables and charts
This report includes the following images and tables:
- Global annual upstream development capex by status
- Number of major project FIDs by year, 2020 risked
- Breakeven oil price of 2020 pre-FID projects
- Capex per flowing boe
- New project approvals
- US Lower 48 liquids cost curve
- US Lower 48 capital spend
What's included
This report contains:
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