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Well Costs are coming down

Posted: Mon Feb 03, 2025 8:43 am
by dan_s
Our Sweet 16 have some of the lowest completed well costs in the industry, which means wells are paying out faster.

Note from Raymond James this morning:

Energy Stat: Drilling & Completions Efficiencies Continue Making Gains Benefiting E&Ps to the Detriment of Service Providers

The shale revolution began around a decade and a half ago and the industry has continued to improve through ever-evolving technology and process improvements for well development. Drilling & completion efficiencies continue to gain traction, with the latter posting the largest improvement between the two last year. This week’s stat highlights some of the historical improvements in both. The benefits of these have largely accrued to reducing cycle times and ultimately driving down D&C costs per lateral foot for operators. Service providers have benefited in recent years through somewhat higher margins but at the expense of fewer working assets (rigs, frac fleets) being deployed. It remains less clear how many further gains can be made, but this industry remains on a never-ending search for ways to drill and complete wells better/faster/cheaper. Those on the leading edge of these trends will fare best, while those who can’t compete will gradually be left behind.

Most of our Elite Eight are in the Top Ten