Seventy percent of future oil developments are commercially viable with Brent crude at $60 per barrel, up from 50 percent a year ago, natural resources consultancy Wood Mackenzie said on Wednesday.
The collapse in energy prices in 2014 and 2015 left many oil projects commercially unviable. However, two years on the energy industry has started to adapt.
"All of the industry is having to adapt its business model to survive. We have seen a lot of cost cuts; we have also seen a lot of capital taken off the table," Simon Flowers, chief analyst at Wood Mackenzie, told CNBC.
A total of 13 million barrels per day (b/d) of new oil supply could be developed by 2025, of which nine million would be commercially viable with Brent at $60, Wood Mackenzie said.
"This is more than at any point since 2009 and 1.5 million b/d more than a year ago. Most of the nine million barrels per day is U.S. tight oil, with productivity improvements and cost deflation in the key growth plays making more tight oil economically viable," Wood Mackenzie said in a report.