Breakeven costs for all unsanctioned oil projects have fallen to around $50/bbl on average, down around 10% over the last two years and 35% since 2014. 

With oil production less expensive to produce versus six years ago, the “clear cost savings winner” is offshore deepwater development, according to Rystad Energy’s latest assessment. 

Rystad’s cost of supply curve for liquids issued on Wednesday said the required oil price for producing 100 million b/d in 2025 has been in continuous decline, which means the updated projection of $50 could keep production at this level.

In 2014, Rystad estimated that the required oil price for producing 100 million b/d in 2025 was close to $90. Analysts in 2018 revised the average price to around $55.

Another key trend is that the...