| |
5 Pages

Can falling tight oil opex save marginal plays?

Can falling tight oil opex save marginal plays?

Report summary

Focused tight oil operators have recently drawn attention to how field operating costs have fallen by 20-30%. Per unit opex is virtually always lower than capex, so how important is it to mange this expense in a low price world? Our models indicate that further reducing US tight oil opex in a US$30/bbl price environment can help support margins in a few NPV positive plays. But for those assets out of the money, additional opex reductions will not be enough to transform the assets into economic projects.

What's included?

This report includes 1 file(s)

  • Can falling tight oil opex save marginal plays? PDF - 408.48 KB 5 Pages, 1 Tables, 3 Figures


This Unconventional Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the unconventional oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.

  • Opex ranges are wide
  • Opex matters more now than ever
  • Examining the trend
  • A single bright point
  • Additional headwinds

In this report there are 4 tables or charts, including:

  • Opex ranges are wide
    • Lower 48 operating cost distribution
  • Opex matters more now than ever
    • Opex as a percent of total Lower 48 spend
    • Sampling of company-specific operating cost reductions
  • Examining the trend
    • Marginal tight oil plays, current and required breakeven opex
  • A single bright point
  • Additional headwinds
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...