As global crude oil has hit the $80/b mark, the industry is now wondering if there is a magic price that would jump-start the offshore sector which is lagging an otherwise steadily recovering oil patch. Higher crude prices near-term may not be enough to entice operators back to the risky business of greenfield offshore projects—as opposed to the warm fuzzies and quick payoff provided by North American shale. “Offshore is starting to look a bit better” as onshore breakevens rise due to high activity, S&P Global Analytics analyst Rene Santos said. “For offshore, due to relatively low activity, service provider costs [for] rigs and fabrication yards continue to decrease, Santos said. “However, shale breakevens are still around $10/b lower than offshore—low $40s/b versus high $40s/b WTI.” Other encouraging signs are afoot that could make offshore look better. A few more final investment decisions than expected were taken this year […]