An analyst believes deep-water field development will still remain competitive with US shale production even in the face of lower oil prices as he characterised cost-cutting in the latter play as “unsustainable”.
While a large number of offshore field projects have been shelved or delayed due to low oil prices, there has been a positive process that has resulted in costs coming down for these schemes due to measures such as drilling efficiencies and resource pooling, according to Rystad Energy partner Lars Eirik Nicolaisen.
