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Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

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The 10 Oil Projects Adding 1.1 Million Bpd To Global Supply

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The ten largest upcoming onshore oil projects worldwide are expected to add 1.135 million bpd to the global oil supply by 2025, according to research and analytics firm GlobalData.

The ten biggest onshore projects—out of a total of 126 such developments worldwide—are expected to consume US$83.1 billion of investment to bring them to production, Oilfield Technology reports, quoting figures by GlobalData.

Of this spending, US$46.7 billion is expected to be made by 2025.

The ten largest onshore projects are expected to produce a total of 9.7 billion barrels of crude oil over their lifetime, according to GlobalData.

In terms of single project development investment, the Kuyumbinskoye conventional oil development in Russia is the leader, with US$12.8 billion expected to be spent over the field’s lifetime. The project is expected to have peak production at 215,485 bpd in 2029. The Kuyumbinskoye project is followed by Cenovus Energy’s Telephone Lake oil sands project with investment of US$10 billion throughout its lifespan, GlobalData says, as carried by Oilfield Technology.

The average breakeven oil price for the upcoming top onshore fields is US$55 per barrel, with Canada at the lowest breakeven of US$52 a barrel and Russia at the highest at US$57 per barrel. Related: What Could Push Oil To $100?

Full-cycle capex per barrel of oil equivalent is expected to average US$7.5 for conventional oil projects, US$9.2 for oil sands developments, and US$9.8 for heavy oil projects, according to GlobalData.

Confidence in the oil and gas industry has started to return with higher oil prices, and a majority of respondents in a DNV GL survey have recently said that they plan to increase capital expenditure this year. The Norway-based energy industry advisory firm noted that while last year confidence in the growth prospects for oil and gas firms had stood at 32 percent of respondents, now it has gone up to 63 percent.

By Tsvetana Paraskova for Oilprice.com

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  • John Brown on January 26 2018 said:
    So let me understand correctly? As OPEC/Russia and the industry like to put it the oil market, after a year of OPEC/RUSSIA cuts, still has not come into balance. That means there is still a glut of oil sloshing around the world, either in storage onshore, or offshore, or floating around in tankers, or socked away in strategic reserves. In short their is plenty of oil. The OPEC/Russia cuts to try and balance the market, a nifty way of saying lower supply to artificially push up prices, has worked despite the fact that a diminished glut still exists, and million of BPD have been idled, although sitting there readily available. In addition the artificially high price propped up by everybody that has any ability to manipulate the price up, not just the oil industry, has put U.S. shale oil into overdrive, and we can expect U.S. production to outstrip all estimates as it has always done, unless of course the industry falls into line with OPEC/RUSSIA and restricts production to help keep prices high. That would be illegal in the USA of course, at least if their was open or secret collusion, but then you don't have to get on a hotline to the Saudis or Russians to know your part in the grand conspiracy. Since we know the USA can now produce a lot more and get it to market in months rather than years, we won't know if they are playing along unless we see less production growth out of the USA than we know they can produce with WTI at $66.
    Then there is this article that says by 2025, or over the next 7 years, the 10 largest onshore project alone, of 126 projects, will add 1.1 million BPD to capacity. That doesn't include offshore projects, or the other 116 onshore projects.
    Meanwhile the drive for energy efficiency continues cutting into demand, and renewables like wind and solar continue to increase market share.
    So I'm trying to figure out with a current glut of oil still available, millions of barrels a day idled, and supply or potential supply increasing over the next 7 years, why again is WTI at $66 today, or Brent over $70? I still haven't seen an article that explains why oil should be over $40 a barrel let alone over $60 or $70. Its certainly not supply and demand?
  • Kr55 on January 26 2018 said:
    Yikes, only 1.1? Over a period of 7 years when demand could go up on average 1M+ per year.
  • Jeffrey J. Brown on January 27 2018 said:
    Of course, assuming about a 7%/year gross rate of decline from existing production worldwide, we need about 6 million bpd of new Crude + Condensate production every year, just to offset declines from existing wells.

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