This year’s reduction in drilling and fracking, combined with the push to max out efficiencies, are seen lowering per-well costs for shale operators by 6.3%, Enverus said Tuesday in a report. But in 2025 those costs are expected to rise by 2.8% as drilling accelerates.
“We believe activity has bottomed and oilfield-service prices will bottom by the end of this year,” said Mark Chapman, oilfield-services principal analyst at Enverus. “An oversupply of fracture sand caused prices to fall this year, but an expected rebound in gas-directed drilling and a trend to longer laterals should boost prices in 2025.”
The number of onshore rigs drilling for oil and gas in the US has fallen 6% since the start of the year amid a wave of corporate takeovers and technical advancements that boosted output on a per-well basis. Total spending by North American drillers is forecast to drop 1% this year, according to Barclays PLC.
Bloomberg News
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