Data for comparing shale plays
New data from S&P Global Platts outlines some of the changes that have taken place amongst oil and gas production companies and within certain North American shale plays. Taylor Carvey, analyst for S&P Global Platts Analytics team, provided some valuable information on internal rate of return changes, drilling and completion costs, play resiliency through the price downturn and production rates per lateral foot (a metric to compare productivity from one play to another). Carvey and his team delivered a webcast presentation on the information earlier this week and also outlined their new oil and gas related information services on wells, land activity and rig data. Check it out.
According to Carvey, areas with the highest oil mix get the best returns. Producers in the major plays will do better in 2017, and in 2018, Carvey expects all regions to begin growing again as prices rise. Higher oil prices, he said, don’t necessarily equate to better IRR for producers as service cost increases will eat into the margins.