Deepwater Going Strong

[Marina Schwarz + 1,576]

Some deepwater projects can now break even at $30 a barrel and by some Rystad means 16. Good going for deepwater explorers.

[NormBreizh + 2]

BS. Deep water IS NOT going strong, this the elephant in the room that most pundits are missing. Offshore production represents 27-29% of worldwide production of oil and has been the most affected by the lack of investments in the past 4 years; it has lost lots of people and precious expertise, Oil companies entirely focused on offshore have mostly been bankrupt or have been surviving by cutting all expenses, trying hard to minimize production decline.

Most drilling contractors are reeling from that period or went kaput. It is going to take a loooong time before the offshore oil industry will be able to be active and booming again. Expect WW offshore production to FALL in the coming year. People and politicians are going to wring their hands and lament the increasing oil prices controled by OPEC and Russia until there is a re-birth of the offshore oil industry and in particular the deep to ultra-deep offshore; only a handful of majors will be able to succeed in that namely SHELL, EXXON, CHEVRON and maybe TOTAL and BP