Impact of oil price on upstream investment, costs and production in the US Lower 48



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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. 

What's included

This report contains

  • Document

    Impact of oil price on upstream investment, costs and production in the US Lower 48

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Table of contents

  • Investment falls most rapidly in the US Lower 48
    • 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 17 images and tables including:


  • Lower 48 capex cuts by region
  • 2016-2017 Lower 48 capex allocations
  • Decline in investment across Lower 48 key plays
  • Cost deflation and efficiency gains
  • US Lower 48 DUC backlog and horizontal rig count
  • EUR improvements across key liquids plays
  • EUR improvements across key gas plays
  • Oil production forecast by region
  • Gas production forecast by region
  • Lower 48 production from key tight oil plays
  • Change in tight oil supply from the key plays
  • Narrowing crude oil price differentials
  • Value comparison from Q4 2014 to Q2 2016
  • Bakken capex spend by operator
  • Bakken development by operator
  • Capex changes across Eagle Ford sub-plays
  • Capex declines across tight oil plays

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