First, this article highlights three international majors that lead the sector in a) greenfield costs; and, b) lifting costs. This is a big, big deal. Look at the graphic -- the article highlights BP, Shell, and ENI -- the small red arrows.
But look at the "little company" in the far right lower corner: COP. Look at those greenfield costs -- amazing.
This is how graphics can skew things. COP is way to the right (bad). But look at the y-axis. We see the "5" and the "10" on the y-axis but there is no "15." There is very little distance between those on the far left and COP on the far right. I'm not an apologist for COP -- their lifting cost is far to the right (bad). But it is not as bad as the chart might suggest when one looks at the y-axis / range.
But one has to ask, why the huge discrepancy in lifting costs among the four: BP, ENI, Shell, and COP? My hunch is it has to do with "boe," natural gas vs crude oil.
COP: from its website, July 24, 2018 --
First, operations --
- Asia, mostly natural gas, I assume, largest segment
- US, lower 48, mostly crude, I assume, second largest segment
For newbies who have not seen a fracking operation:
Yeah, I'm inappropriately exuberant about the Bakken.
For newbies, COP is represented by Burlington Resources in the great state of North Dakota.
Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions just because you like the photos.