Guest Editorial: The South American Deepwater Sector (original) (raw)

Journal of Petroleum Technology, 2020

Abstract

2020 set the stage for a profound transformation in the oil and gas industry. The oil and gas industry was already facing a challenging transition process as economies move toward a low-carbon future; however, surviving and prospering in a low-oil-price and high-risk environment is an even greater and more urgent challenge. Producers with relatively high-cost production will bear the brunt of production curtailments, since none are able to sustain uneconomic production for very long. In the years leading to 2019, shale plays stole the show, increasing production as long as prices sustained the frantic pace of drilling required for the production increases observed in the US. On the other hand, the intrinsic characteristics of deepwater plays - highly front-loaded investments and long project cycles - worked against them. Relatively low prices that were just as challenging for shale plays were considered a reason to delay deepwater projects (Rigzone 2016). Portfolio diversification i...

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