EP Services Costs Moderate as Steel Prices Soften

摘要

Drilling costs in the US shale sector are finally leveling out and potentially retreating amid falling prices for key materials and natural gas and a larger slowdown in upstream activity. Moderating upstream costs could improve operational efficiency for US EPs, providing more flexibility in their capital spending budgets and enabling more substantial returns to shareholders. Michael Henderson, the executive vice president of operations for Houston-based Marathon Oil, said that the tempered costs largely stemmed from an increase in the availability of drilling rigs and work crews.