OGF Article Efficiency Focus Helps Industry Chase Deepwater Capital

Stephen Whitfield, Senior

SPE.org 

Following a failed installation in 2015, Chevron began delivery of its Big Foot TLP to the Gulf of Mexico in February. Though the price of oil is on the rise, operators in the deepwater space are still focused on providing competitive returns on short-cycle investments, and a focus on efficiency may be critical to ensuring long-term stability. Speaking on the first day of the 2018 Offshore Technology Conference (OTC), Chevron North America Exploration and Production President Jeff Shellebarger shared his company’s approach to offshore deepwater development in the current economic environment. Shellebarger said that shareholders expect competitive financial performance in deepwater projects and those projects must generate competitive investment returns at the lower end of the price environment in order to be viable and continue to attract investment capital. The industry, he said, is working to meet the challenges of financing through a focus on efficiency, technology, and standardization.