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 index
- Sub-play benchmarking under flat US$55/bbl and US$2/mcf prices
- Sub-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
Powder River Tight Oil Key Play
A detailed analysis of the Powder River Basin built from the reservoir level up.
$22,800
Asset Report
Trail zinc smelter
A detailed analysis of the Trail zinc smelter.
$2,250
Asset Report
San Juan Mancos shale unconventional play
A detailed analysis of the San Juan Mancos shale oil and gas unconventional play. Northern gas and Southern liquids areas are analyzed.
$2,800
