Insight
Impact of oil price on upstream investment, costs and production in the US Lower 48
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
In the two years since oil prices collapsed, upstream development spend worldwide has been cut at an unprecedented rate, with more than US$370 billion of capital expenditure cut across 2016 and 2017. While massive in aggregate, no country's response rivals the swiftness and scale of the US Lower 48, which slashed nearly US$150 billion from 2016-17 spend and over US$250 billion across the next five years.
Table of contents
- Investment falls most rapidly in the US Lower 48
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Two tight oil plays hit hardest
- Spotlight on the Bakken
- Eagle Ford: a case study in high-grading
- Falling costs drive further capex reductions
- Plummeting rig count and drilling declines underpin the fall in capex
- Well productivity improvements bolster falling production
- Production losses to average 4.2 million boe/d through 2020
Tables and charts
This report includes the following images and tables:
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Lower 48 capex cuts by region2016-2017 Lower 48 capex allocationsDecline in investment across Lower 48 key plays
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Cost deflation and efficiency gainsUS Lower 48 DUC backlog and horizontal rig countEUR improvements across key liquids playsEUR improvements across key gas playsOil production forecast by regionGas production forecast by regionLower 48 production from key tight oil playsChange in tight oil supply from the key playsNarrowing crude oil price differentials
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What's included
This report contains:
