2021 marks an opportunity for upstream operators to overcome cost challenges presented amid last year's turbulent market through appropriate CAPEX and OPEX forecasting.

In our July update, we identify and provide cost forecasts for key CAPEX categories including OCTG, onshore & offshore drilling rigs; and OPEX categories including production chemicals and equipment rental.

Some notable trends include equipment rental likely to experience one of the most notable cost increase (~5%) amid price increases in 2022.

Operators are leveraging these forecasts to estimate key cost changes, forecast spend, and use industry data to optimise costs in 2021.