Profitability and price sensitivity of unconventional oil projects
The article studies the breakeven prices and price sensitivity of unconventional oil projects such as development of Polar offshore oilfields in Norway, shale plays in the USA and oil sands in Canada. Based on the comparison of the evaluation of production breakeven prices, analysis of lets the authors think development of Polar projects more profitable ($40 versus $52,5 for shale oil projects and $57,5 for oil sands projects). However, presence of a big potential of the breakeven prices reduction is observed in the projects of oil sands and oil shales development. The regression and comparative analyses allowed detecting the fact that projects of oil sands development are 40 % more sensitive to price fluctuations than shale deposits development. Polar projects are not price sensitive at all. With account of presence of big oil sands deposits, production of shale oil and that from offshore fields in Russia, the research is urgent for the development of Russian oil and gas industry.