Energy projects that need oil prices above $60 per barrel in order to break even risk being uncommercial going forward, according to Rystad Energy. However, massive investments in exploration and sanctioning are still needed to meet growing global demand.
As some of the North Sea’s private equity-backed players prepare themselves for public listings, 2020 is expected to be a “big year” for gauging the size of investors’ appetites.
An expected multi-billion capital investment by Equinor at its new Dogger Bank Offshore Wind Farm will see it rival its major oil and gas projects, according to Rystad Energy.
Oil companies are under increasing pressure to bring fuel to market faster and cheaper, leading BP Plc to conclude some of its resources “won’t see the light of day,” according to its head of strategy.
More than 1 million kilometres of new oil and gas wells will be drilled over the next five years, according to a new forecast, further than the distance to the moon and back.
Chevron has announced plans to buy fellow US oil and gas operator Anadarko Petroleum in a deal worth £38.2bn, the largest upstream takeover since 2015.
Energy consultancies Rystad Energy and Wood Mackenzie expect 13-14 North Sea developments to have reached final investment decisions (FID) by the end of this year.
Research firm Rystad Energy has found that more delayed projects have been sanctioned so far in 2017 than during the entirety of 2016 – but the overall list has continued to grow.