Insight
Scrutinising tight oil well costs with more detailed analytics
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Additional cost inflation is the last thing tight oil players want to contend with in 2019. Operators expected inflation of 10% or less through 2018, yet the price of some well components rose by almost double that figure. What happened? Using actual E&P spend data from our sister company PowerAdvocate this Insight dives into how cost increases have been affecting operators, how much more they can handle, and how aggressive inflation may be in 2019.
Table of contents
- A growing concern
- Introducing PowerAdvocate market data
- Complex data with various trajectories
- Primary research: cost overspend observations
- How much cost uptick can producers take?
- Is that level of inflation likely to happen?
- What can keep inflation at bay?
- Conclusions and takeaways
- Appendix
Tables and charts
This report includes the following images and tables:
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Trailing 12 month Lower 48 well cost changes by componentPowerAdvocate total drilling and completion cost breakdownWeighted average trailing 12 month overall cost increase by basin
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2018 drilling and completion well component cost movements – normalised to multi-basin averagesAdditional inflation allowance for wells to remain NPV positiveTotal anticipated D&C inflation by basin – 2019 outlookPowerAdvocate drilling subcategory definitions
What's included
This report contains:
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