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As Oil Hits $75, Shell Wants Deepwater Costs at $40 or Below

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oil rig sun

Photographer: Tim Rue/Bloomberg

The Big Oil playbook has been straightforward for decades: Higher prices mean offshore projects that are further, deeper, more complex than ever before. It’s different this time, according to Royal Dutch Shell Plc.

Deepwater projects need to break even at $40 a barrel, or preferably lower, said Harry Brekelmans, Shell’s project and technology director, in an interview Monday, That’s almost half the cost of some projects commissioned before the 2014 oil-price crash, he said. On Monday, Brent crude, the global benchmark, rose to more than $75 a barrel in London.