GHS: 2013 F&D costs improve at the bit, slip when all-in

摘要

Industrywide drillbit finding and development costs dropped 4% over the preceding year, while all-in F&D costs increased just under 2% year-over-year, according to an analysis conducted by Global Hunter Securities. The anomaly makes sense to the researchers. "Neither metric surprises us, as operators are getting more efficient as they move into manufacturing mode (pad drilling mixed with the simple benefit of experience is knocking well costs down), while at the same time spending a record amount of money on acquisitions that have immaterial amounts of reserves associated with them (proved reserves are no longer a requirement in the resource paradigm we are now a part of)," according to the June 2 report, led by senior E&P analyst Mike Kelly.