Insight
Tight oil cost inflation: explaining 2021 and forecasting 2022
Report summary
Supply chain pressures are increasing the cost of tubulars, chemicals, experienced labor, frac spreads, electronics, and other D&C components. Freight and transport constraints are creating global bottlenecks too, slowing the activity rebound and further inflating the price of what isn’t already contracted. Labor inflation is only adding fuel to this fire. As activity ramps up and utilization increases, oilfield service providers will look to exert pricing power.
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