Navigating in Deep Water: Greater Rewards Through Narrower Focus

Fig. 1—Deepwater oil break-even cost, by basin, 2025 estimates. USD/BOE.

The deepwater oil sector is at a crossroads. Deepwater production (defined as oil produced in water depths of greater than 450 m) has had a spectacular run over the past decade as major oil companies broadened their portfolios worldwide. Global investment soared from USD 16 billion in 2003 to more than USD 70 billion in 2013, and production has more than doubled over the past 10 years to almost 6 million B/D, or 7% of the world’s total oil supply.

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Navigating in Deep Water: Greater Rewards Through Narrower Focus

Thomas Seitz and Kassia Yanosek, McKinsey & Company

01 March 2015

Volume: 67 | Issue: 3

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