Skip to comments.Pressure on Oil Megaprojects
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 worlds oil supplies.
(Excerpt) Read more at nytimes.com ...
> 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It’s been replaced by easier to extract on-shore resources.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.
And they keep predicting we are going to run out of oil any day now.