Insight
Can falling tight oil opex save marginal plays?
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
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.
Table of contents
- Opex ranges are wide
- Opex matters more now than ever
- Examining the trend
- A single bright point
- Additional headwinds
Tables and charts
This report includes the following images and tables:
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Lower 48 operating cost distributionOpex as a percent of total Lower 48 spendSampling of company-specific operating cost reductionsMarginal tight oil plays, current and required breakeven opex
What's included
This report contains:
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