While there is a huge focus on cheap, unconventional onshore drilling, especially in the Permian Basin, deepwater areas may be the next accessible "super-basin" for producers.
Currently, pumping from deepwater sources is more expensive than pumping from shale formations, but Luca Bertelli, chief exploration officer at Italy's Eni (E), said he believes deepwater can be profitable with oil prices at $50 per barrel.
Eni is using some lessons from unconventional shale operations to help make deepwater drilling cheaper, Bertelli said at CERAWeek 2018, a top gathering of energy industry and policy leaders, on Wednesday.
He added that digitization and automation of some processes will help lower costs and improve production times to make deepwater drilling cost effective amid lower oil prices.
But while the Permian is a single, discrete area, there is no one deepwater zone that could be the next super-basin. Bertelli mentioned the Santos basin in Brazil, while BHP Billiton's (BHP) vice president of exploration, Niall McCormick, said the company is focused on the Gulf of Mexico, western Australia and the Caribbean.
Eni's U.S.-listed shares rose 1.4% on the stock market today, while its oil giant peers generally retreated: Exxon Mobil (XOM) lost 2.5%, BP (BP) 0.6%, and Royal Dutch Shell (RDSA) 1.1%. Chevron (CVX)% rallied for a 0.2% gain. BHP Billiton fell 1.7%.
