Lower 48 service sector: how much does a recovery cost?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Table of contents
- Emerging from trough pricing in 2017
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Three cost components driving well economics
- Pressure pumping: 20% cost inflation
- Horizontal rigs: 10% cost inflation
- Proppant: 15% cost inflation
- Not all inflation is created equal
- Rising costs increase breakevens
- Corporate exposure to onshore cost inflation
- Final verdict on cost inflation
Tables and charts
This report includes the following images and tables:
- D&C capex breakdown (2017 Delaware Wolfcamp Reeves Core type well)
- 2017 Lower 48 cost inflation assumptions based on growth in basin spend
- 2017 new drill production at risk per key tight oil play
- NPV10 breakeven price for Wolfcamp, Eagle Ford and Bakken type curves (2016-2017)
- Cumulative cash flow for key tight oil type curves
- Corporate exposure to cost inflation across the Lower 48
- Lower 48 key tight oil play completions (2014-2018)
- US total land rig count (2014-2017)
- Proppant loading by key tight oil play (2014-2016)
What's included
This report contains: