10 oil projects increasing global supply
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. As Oil Price writes in an article "The 10 Oil Projects Adding 1.1 Million Bpd To Global Supply", 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. 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.
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.