Devon Sees Spending Less Next Year to Maintain Shale Output

“We are addressing the labor in a very thoughtful, proactive way at these levels,” Muncrief said on the sidelines of the American Energy Security Summit in Oklahoma City. “Any increase in activity becomes somewhat problematic.”

After a 50% hike in oilfield costs since 2021, the Permian Basin of West Texas and New Mexico is expected to see average well costs shrink by 9% next year, according to a Citigroup note to investors last week.