Link here to Rigzone.com.
Hess Corp. said its capital and exploratory budget for 2013 is 18%
smaller than last year's expenditures, as the oil-and-gas company looks
to again spend most of the funds of exploration and production.
The company's 2013 budget is $6.8 billion, down from $8.3 billion
spent in 2012. Last January, the company initially set its capital
budget for the year at $6.8 billion as well.
Of the $6.7 billion budgeted this year for exploration and
production, $2.7 billion is dedicated to unconventional shale resources
and the rest is focused on conventional resources--with $1.85 billion
for production, $1.6 billion for development and $550 million for
exploration. As in past years, $100 million is set aside for marketing
and refining and corporate needs.
Almost $3 billion for unconventional shale.
I read the actual news release on Hess's website and what actually is happening is that a year ago in their Q1 presenation, Hess's plan was to drill single wells to hold leases. However, they realized that multi-pads are much more cost effective, and are shifting their strategy to do multiple wells at a time. They indicate that the difference in expenditure is actually going to be due to cost savings from more efficient drilling. Go to their Investor Relations section on the web, under new releases.
ReplyDeleteI'll have to follow that. Thank you.
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