Cheap Oil Drilling May Keep Prices Down
|Cost for Finding a Barrel of Offshore Oil in the U.S.
||Total Cost of Producing a Barrel of Oil Both Offshore and Onshore in the U.S.
|Source: U.S. Department of Energy, Energy Information Administration
The reasons for the dramatic decline in exploration and
production costs over the past 15 years are many:
- Western oil producers have adopted innovative
technologies such as horizontal drilling, floating production and
electrical submersible pumps.
- More oil can be extracted from fields even though fewer wells
- Geologic areas such as the Gulf
of Mexico and offshore areas near Brazil and West Africa
previously excluded for technological reasons are now among the fastest
growing production regions.