Oil and Gas Markets to 2025 - LUKoil

... have more than tripled since the start of 2000s. To a great degree the increase of costs is tied to the exhaustion of conventional oil resources or those that are easily recovered. Now about 15 mb/d have a commercial production cost of over $70/bbl. In USA, shale oil projects on average need $80/bbl to become profitable. As we are moving towards more expensive basins costs will continue to rise, even from now till 2025 72% of increase in supply will be attributed to hi-tech production methods and unconventional fuels, the remaining 28% will come mainly from Saudi Arabia, Iraq and the CIS. I personally think this is a key point to remember for all those advocating ...