Most Global Oil Projects Seen Working Below $60 on Cost Cuts
- 70% of potential new output to 2025 viable below $60: Wood Mac
- Crude may need to reach $85 to finance other supply needed
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Most of the oil projects planned over the next decade are economically viable with prices below $60 a barrel as explorers succeed in squeezing costs, consultant Wood Mackenzie Ltd. said.
Oil explorers will be able to add 9 million barrels a day to global supply by 2025 with Brent crude under $60, mostly from U.S. shale, the Edinburgh-based company said in a study Wednesday. That’s about 70 percent of new projects under consideration, an increase from 50 percent a year ago. Still, the remaining 4 million barrels a day of production needed to meet demand by the middle of the decade may require prices as high as $85 a barrel, it said.