Middle East Economic Survey


No 8


Escalating Project Costs Leave Producers Slim Margin For Oil Price Downturn

The rapid escalation in oil and gas project costs since 2005 has given oil producers little margin for a price downturn, according to a study by Cambridge Energy Research Associates (CERA). On launching their new Upstream Capital Costs Index (UCCI), CERA said that the oil and gas business is at a crossroads: while oil prices stay above $55/B confidence will remain, but if...