Most of the oil projects planned over the next decade are economically viable with prices below $60 a barrel as explorers succeed in squeezing costs, consultant Wood Mackenzie Ltd. said.
Oil explorers will be able to add 9 million barrels a day to global supply by 2025 with Brent crude under $60, mostly U.S. shale oil, the Edinburgh-based company said in a study Wednesday. That’s about 70 percent of new projects under consideration, an increase from 50 percent a year ago. Still, the remaining 4 million barrels a day of production needed to meet demand by the middle of the decade may require prices as high as $85 a barrel, it said.
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