Domestic capital spending soared in 2005 for John S. Herold Inc.'s Top 50 U.S. producers, climbing 36% to $69.1 billion, yet the surge in E&P capex wasn't coupled with spiking reserve-replacement and finding and development (F&D) costs, report analysts Nicholas Cacchione and Kathryn Berger. As investment spending increased, unfortunately, so did production costs. According to the analysts, per-unit production costs climbed 29% to $8.42 per BOE. Field production expenses climbed 26%; production taxes, 42%; and shipping and transportation expenses, 22%. Total SA continued to be the lowest-cost producer in the group at $3.92 per BOE. Reserve-replacement costs climbed less than 3%, while F&D dipped about 5%, they say. Discounting the benefits of reserve volumes added from upward reserve revisions, reserve-replacement and F&D costs would have weighed in about $2.40 per barrel of oil equivalent (BOE) higher, they add. For more on this, see the July issue of Oil and Gas Investor. For a subscription, call 713-260-6441.
Recommended Reading
Now, the Uinta: Drillers are Taking Utah’s Oily Stacked Pay Horizontal, at Last
2024-10-04 - Recently unconstrained by new rail capacity, operators are now putting laterals into the oily, western side of this long-producing basin that comes with little associated gas and little water, making it compete with the Permian Basin.
EY: How AI Can Transform Subsurface Operations
2024-10-10 - The inherent complexity of subsurface data and the need to make swift decisions demands a tailored approach.
Northern’s O’Grady: Most of ‘Best’ Acres ‘Already Been Bought’
2024-10-24 - Adding new-well inventory going forward will require “exploration or other creative measures,” said Nick O’Grady, whose Northern Oil and Gas holds interests in 10,000 Lower 48 wells.
Darbonne: The Geologic, the Man-made and the Political of Uinta Basin Outcrops
2024-10-01 - The oily western Uinta features layers of sedimentary deposits on view for visitors, mostly uninterrupted by man-made features but having an unseen pall of federal interference.
Hurricane Helene Shuts in Nearly 30% of GoM Crude Production
2024-09-25 - Bumped up to hurricane classification on Sept. 25, Hurricane Helene has shut in 29% of crude and 17% of natural gas production in the Gulf of Mexico as it nears landfall in Florida tomorrow.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.