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7 Pages

US drilling cost inflation trends


US drilling cost inflation trends

Report summary

Wood Mackenzie's analysis of cost drivers in the US onshore drilling market shows that inflation has moderated in recent months and we see limited potential for strong inflation in this sector over the next few years.  Overall, we anticipate US drilling cost inflation to remain below 5% through 2018.  The impacts of pad drilling, ample supply from the service sector and moderate growth in commodity prices ease inflation concerns. During the mid-2000's, the US oil and gas industry saw a...

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This report includes 1 file(s)

  • US drilling cost inflation trends PDF - 529.31 KB 7 Pages, 0 Tables, 11 Figures

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

Proprietary data means a superior level of analysis that is simply not available anywhere else. Wood Mackenzie is the recognised gold standard in upstream commercial data and analysis.

  • Executive Summary
  • Introduction
  • 1 Measuring oil and gas drilling cost inflation
    • 1.1 CPI vs. PPI
    • 1.2 Inflation drivers
  • 2 Assessing drilling cost inflation in the US
    • Labour rates
    • Rig count
  • 3 US drilling cost inflation outlook
    • 3.1 'Cost-push' outlook
    • 3.2 'Demand-pull' outlook
    • 3.3 Drilling inflation forecast

In this report there are 11 tables or charts, including:

  • Executive Summary
  • Introduction
  • 1 Measuring oil and gas drilling cost inflation
    • Drilling Oil, Gas, Dry or Service Wells Producer Price Index (100 = January 2000)
  • 2 Assessing drilling cost inflation in the US
    • Drilling Oil, Gas, Dry or Service Wells PPI vs. Industrial Commodities PPI (100 = January 2000)
    • Drilling Oil, Gas, Dry or Service Wells PPI and Oil & Gas Labour Rate Index (100 = January 2000)
    • Oil prices and drilling activity
    • PPI Drilling Oil, Gas, Dry or Service Wells (100 = 2000)
    • Rig Count by Product
  • 3 US drilling cost inflation outlook
    • Steel and Nickel Price Outlook (Nominal US$)
    • WTI and Henry Hub Forecasts (Nominal)
    • Rig Count Forecast
    • PPI Drilling Oil, Gas, Dry or Service Wells (100 = 2000)
    • PPI Drilling Oil, Gas, Dry or Service Wells
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Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

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