The cost of developing new upstream oil projects is continuing to rise as inflationary pressure and supply chain woes endure. New research from Rystad Energy shows that the average breakeven cost of a non-OPEC oil project grew to $47 per barrel of Brent crude, a 5% increase in the last year alone. Despite rising costs, breakevens are still less than current oil prices. Offshore deepwater and tight oil projects remain the most economical new supply sources, with oil sands still the most expensive. By analyzing breakeven costs, we can estimate how…
