According to Rystad, the average breakeven price for all unsanctioned projects stands at approximately $50/bbl – around 35% lower than prior to the 2014 oil price downturn, but still above today’s Brent price of $47.50/bbl. Much of breakeven price compression can be attributed to the transformation of the oilfield services sector (including companies in the water space), which was forced to significantly raise operational and cost efficiencies to survive the 2014 downturn. This is especially true for the tight oil market in which a tough 2020 is expected to continue driving down supply chain and services pricing.