Once costly deep-sea oil turns cheap, to OPEC's dismay

(May 31): Reports of deep-sea drilling’s demise in a world of sub-US$100 ($138.6) oil may have been greatly exaggerated, much to OPEC’s dismay.

Pumping crude from seabeds thousands of feet below water is turning cheaper as producers streamline operations and prioritize drilling in core wells, according to Wood Mackenzie. That means oil at US$50 a barrel could sustain some of these projects by next year, down from an average break-even price of about US$62 in the first quarter and US$75 in 2014, the energy consultancy estimates.

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