Investor Presentaiton
TMK's Home Market is One of the Lowest Cost Oil Producing Regions
Global oil production supply curve
Coal to Liquid
Gas to Liquid
Asia DW(3)
Permian tight
TMK
Breakeven price (U.S.$/Boe)(1)
125
Low-cost supply completely in the money at current Brent price
100
75
50
50
Brent Jan-Apr 2020 average price
25
OPEC, Middle East and Africa
0
20
Russia,
Caspian region*
40
Production (MBD)
Aus. and Pacific
America
Non-
DPEC)
Asia
-con-
NA
conv.
60
Bakken
EOR(2)
Eagle Ford
Europe
VZ extra heavy|
NA DW(3)
Africa Offshore
Canadian
Oil Sands
Arctic
SA DW(3)
(primarily Brazil)
Brent Crude 2020 Year low
80
Even with oil at 2020 Year lows, the low cost Russian and Caspian region is able to remain profitable unlike the majority of its international counterparts.
In 2015 and 2016, Russia was the only region globally to maintain healthy drilling activity and stable OCTG demand.
Source: IEA World Energy Outlook (2016); EIA International Energy Outlook (2016); EIA Annual Energy Outlook (2016); Morgan Stanley (2016), Bloomberg (as of 27 Jan 2020)
Notes: (1) Breakeven price assumes a 10% return, and NPV of zero; *includes Azerbaijan, Kazakhstan, Turkmenistan and Uzbekistan; (2) Enhanced oil recovery; (3) Deep Water
TMK
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