Long-cycle oil projects (10-15 year development) like those in Guyana, Brazil, and Canada are low price elasticity producers that will produce regardless of price once committed because they are also low break-even cost producers (Guyana projects profitable at $30 Brent), creating structural oversupply even at current $80 prices.
factualpending
Speaker
Paul SankiEvidence Quote
“a lot of that oil outside of OPEC is long cycle oil so that's oil that essentially you develop on a 10 to 15 year view for example in Guyana and once you develop it once you're committed to development you produce the oil regardless of price...the Guyanese projects are in the range of $30 Brent to be profitable and Brent's at 80”
Source
'Never Before Seen' Oversupply Of Oil To Collapse Crude Price? | Doomberg & Paul Sankey— David LinCreated: 8/12/2026, 6:45:10 PM
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