Latest RMRI study published in Oil Voice – De-marginalising small oil fields

The third in a series of studies on behalf of ABT Oil and Gas, the latest article investigates how movements in oil price and development costs impact small field viability. Highlights include:

  • Study demonstrates the precarious economic position of marginal oil and gas projects; fields containing as much as 19 million boe struggling to break even at $90 per boe using conventional production systems, let alone achieve necessary hurdle rates
  • Viability of fields containing 25 million boe, the average size of recent discoveries in the North Sea, is extremely vulnerable to modest cost increases or falling oil price
  • Break-even reserve size is far more sensitive to costs than oil price – the answer to marginal field development is long term cost reduction not rising oil prices
  • ABT Oil & Gas’s SIFT reduces costs by some 60% on a model 10 million boe field and lowers field break-even size to below 5 million boe
  • ABT Oil & Gas are able to transform the economics of small field development and unlock the 1.25 billion boe contained in 105 marginal fields in the UKCS

You can read the full article on Oil Voice