Insight
Tight oil needs new metrics
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
As tight oil operators focus on navigating the next few months, holding decades of well inventory simply isn't as important. The higher priority is cash flow. Any new wells must pay back incredibly fast. Screening by these metrics reshuffles the cost stack, and the Permian loses some of its luster. On a straight payback metric at today's prices, core zip codes in the Eagle Ford and Bakken represent some of the most competitive acreage in the Lower 48. More mature tight oil basins won't provide years and years of growth potential but can offer portfolio optionality and a safer retreat while prices remain depressed.
Table of contents
- Executive summary
- Investment doesn't go to zero
- Arguing for payback and P/I ratios
- Benchmarking the best tight oil assets
- Lower price decks
- Any upside?
- Conclusion
Tables and charts
This report includes the following images and tables:
-
The pros and cons of payback period vs profitability indexSub-play benchmarking under flat US$55/bbl and US$2/mcf pricesSub-play benchmarking under flat US$40/bbl and US$2/mcf prices
What's included
This report contains:
Other reports you may be interested in
Asset Report
Heidelberg (GC 859)
Heidelberg (GC 859) is a subsalt oil field located in southern Green Canyon, about 15 kilometres (9 miles) south of the ...
$3,720
Insight
US upstream in brief: Mitsubishi makes a US$7.5 billion Haynesville power play
The US week in brief highlights the need-to-know current events from US upstream. Stories are supplemented with proprietary WoodMac views.
$1,350
Asset Report
Other Rocky Mountains tight oil and gas unconventional play
Explore other tight oil and gas reservoirs beyond the established key Rocky Mountain plays. Identify pioneering E&Ps and new opportunities.
$2,800
