Deepwater can compete with shale, Woodmac says after PowerNap FID

Deepwater oil and gas developments can compete with shale, energy intelligence groups Wood Mackenzie has said following Shell’s FID for the PoweNap project in the Gulf of Mexico on Thursday.

As Offshore Energy Today reported on Thursday, Shell will develop the PowerNap deepwater oil development as a subsea tie-back to its Olympus production hub, which started production in 2014.

Michael Murphy, Wood Mackenzie’s research analyst, Gulf of Mexico said Shell’s PowerNap sanction reflected a broader trend of Majors embracing subsea tie-backs that offer quicker paths to first oil and attractive returns.

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