Monday, November 28, 2016 - 3:00pm
Velda Addison
When it comes to breakeven prices for development projects targeting natural gas, the ultradeep water of the Mediterranean Sea and the deep U.S. Gulf of Mexico are hard to beat.
This is based on research conducted by Stratas Advisors, which studied the economics of about 150 natural gas assets worldwide.
“Driven by the low-cost Leviathan gas development with high well productivities offshore Israel, the breakeven price of the ultra-deepwater development is only about $1.5/Mcf [thousand cubic feet], much lower than its counterparts in the shallow-water and deepwater developments in Egypt and Libya, where the breakevens are around $4.4/Mcf and $3.8/Mcf,” the research and consulting company said in a report. “The low cost giant gas discovery Zohr, offshore Egypt, drives the average price down in the deepwater segment.”
Velda Addison
When it comes to breakeven prices for development projects targeting natural gas, the ultradeep water of the Mediterranean Sea and the deep U.S. Gulf of Mexico are hard to beat.
This is based on research conducted by Stratas Advisors, which studied the economics of about 150 natural gas assets worldwide.
“Driven by the low-cost Leviathan gas development with high well productivities offshore Israel, the breakeven price of the ultra-deepwater development is only about $1.5/Mcf [thousand cubic feet], much lower than its counterparts in the shallow-water and deepwater developments in Egypt and Libya, where the breakevens are around $4.4/Mcf and $3.8/Mcf,” the research and consulting company said in a report. “The low cost giant gas discovery Zohr, offshore Egypt, drives the average price down in the deepwater segment.”
