Monday, June 3, 2019

Well, Lookee Here -- Seems To Be Counter To Everything We've Been Hearing Elsewhere; Costs Came Down On A Per Bbl Basis -- June 3, 2019

Rigzone is reporting that "E&P costs hit 10-year low in 2018." Data points:
source: EIA
  • based on analysis of 116 E&P companies' annual reports
  • the companies added a net 10.3 billion boe to their proved reserves during 2018
  • total E&D costs: a nine percent (9%) vs 2017 when calculated as dollars per BOE of proved reserves added
  • actual costs actually increased
  • costs provide an idea of the expenditures needed to add one barrel of proved reserves
  • the 2018 E&D costs incurred at $15.20 per additional boe of proved reserves was the lowest it’s been since 2009
Note: it would be interesting to see the break-out of conventional costs vs non-conventional oil E&D costs. 

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