Chart of the Day: Take a look at how costly offshore oil has become

Meanwhile, onshore oil is depleting.

Near-term uncertainties in oil prices are putting heavy pressure on Singapore’s oil companies to continue to exercise capital discipline and channel their spending towards achieving production.

According to a report by Maybank Kim Eng, onshore oil is depleting in supply as offshore oil costs more to produce. Maybank says that something has got to give if oil prices dive below US$80/bbl, and it would either be a cut in demand or a willingness to pay more for oil.

Maybank adds that players exposed to opex - development and production spending - and shallow waters will have to be more insulated in the next six months. Other trends include oil companies preferring younger and modern assets for their efficiency and safety and NOCs continuing spending, motivated by energy security over economic profits.