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Pressure on Oil Megaprojects
The New York Times ^ | JUNE 17, 2014 | MURIEL BOSELLI

Posted on 06/23/2014 3:50:31 AM PDT by Laurent.w

Around the world, the giant oil companies of the United States and Europe are putting the brakes on a decade-long spending spree focused on finding and developing offshore oil fields in ever-tougher environments.

The reason: Soaring costs are outpacing foreseeable rises in energy prices.

Analysts at Bernstein say oil prices are likely to remain stable in the near term, but they also point to a long-term uptrend, with prices underpinned by rising costs. They predict that oil prices will rise to an average of $132 per barrel in 2018, from $110 per barrel now.

“The era of easy to find, easy to extract, easy to process” oil from accessible shallow-water offshore oil fields is over, Mr. Waldron said.

The prospect of high prices, underpinned by high-cost fields, may be good news for some — not least OPEC, whose member countries pump around a third of the world’s oil supplies.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy
KEYWORDS: cost; oil; opec; prices

1 posted on 06/23/2014 3:50:31 AM PDT by Laurent.w
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To: Laurent.w

> “The era of easy to find, easy to extract, easy to process” oil from accessible shallow-water offshore oil fields is over, Mr. Waldron said.

It’s been replaced by easier to extract on-shore resources. Much better value play - which is why the majors are underperforming the sector.


2 posted on 06/23/2014 4:40:31 AM PDT by glorgau
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To: Laurent.w

And they keep predicting we are going to run out of oil any day now.


3 posted on 06/23/2014 5:04:20 AM PDT by Jack Hydrazine (Pubbies = national collectivists; Dems = international collectivists; We need a second party!)
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