White Papers
Why Are Some Deepwater Plays Still Attractive?
A sustainable future for the industry in deepwater is further investment in proven sweet spots and a search for similar plays. The two prime characteristics of these sweet spots are exceptional reservoirs at unexceptional depths. Expensive deepwater wells must add as many barrels as possible. The industry is making progress developing deepwater finds. Projects sanctioned since 2012, and green fields now approaching FID, will together recover over 30 billion barrels of oil. These fields need just US$42/barrel on average to achieve a 10% return. Better reservoirs break even at lower prices.
Lower Oil Prices Drive The Need To Optimize The Sand Supply Chain
Lower oil prices drive the need to optimize the sand supply chain since sand is a major cost input to each completion. A shift from pneumatic trucks to containerized last mile solutions is under way due to sizable cost savings.