$83.1bn investment to boost production at top ten onshore oil projects

Top Ten Upcoming Onshore Oil Projects. Source: Upstream Analytics.

Over $83.1bn in capital expenditure will be spent over the lifetime of the top ten onshore oil projects to produce 9.7 billion barrels of crude oil, according to research and consulting firm GlobalData.

These 10 projects, selected from 126 upcoming onshore projects globally, will contribute incremental capacity of 1,135,034 barrels of oil per day (bd) to global supply by 2025. Kuyumbinskoye in Russia is the largest with anticipated peak production at 215,485 bd in 2029 at an estimated cost of $12.8bn.

GlobalData reports the average development breakeven oil price for top upcoming onshore crude projects at $55 per barrel, with projects in Russia having highest breakeven price at $57 per barrel and Canada the lowest at $52 per barrel.

Conventional oil developments need $42 per barrel to break even. Oil sands have an average break-even of $52 per barrel, while heavy oil projects have the highest break-even at $92 per barrel.

GlobalData estimates $83.1bn will be spent to bring the top ten onshore projects online, with $46.7bn forecast by 2025. Conventional oil Kuyumbinskoye development in Russia leads capital investment with $12.8bn over its development lifetime, followed by Canada’s Telephone Lake (Cenovus Energy Inc.) oil sands project with $10bn.

Differentiating for project type, GlobalData expects full-cycle capital expenditure per barrel of oil equivalent to average $7.5 for conventional oil projects, $9.2 for oil sands, and $9.8 for heavy oil developments.