Cost of Russian Oil
December 16, 2022
The cost of Russian oil in USD/Bbl for 2012, H1, 2021, and H2, 2021. Since Russia’s costs are not on a ‘full cycle’ cost basis like North America, Incorrys calculated an equivalent 2021 cost of the US Permian Basin for comparison.
The total cost of Russian oil reaches USD $40-45/Bbl in 2021 including the cost for development of new fields however, as most new fields are located in remote areas of Siberia, they require significant infrastructure investment. The total cost of oil in Russia without new field development is comparable to costs in the Permian and other US Tight Oil basins.
Crude Oil Full-Cycle Cost Components
September 3, 2021
Full-cycle cost components for crude oil includes; operating costs, royalties and production taxes, overhead, finding and development (F&D), producer return, and basis differential.
F&D and operating costs account for over 50% of the crude oil full-cycle costs while royalties & production taxes producer returns account for more than a third.
North American Shale Oil Cost Curve
August 19, 2021
Full-cycle cost curve for North American shale oil at West Texas Intermediate (WTI) illustrates the amount of resource available at various cost levels.
Long-term, prices in excess of USD55/Bbl (real 2020) will spur drilling and production growth, tempering oil price upside.
Full-Cycle Costs of Tight and Conventional Oil
September 1, 2021
Detailed full-cycle costs for four oil plays by cost component (operating costs, royalties and production taxes, overhead, Finding and Development (F&D), producer return, and basis differential). Additional chart of the total full-cycle cost ranked by play.
Since 2018, most oil wells drilled in US are horizontal wells with multi-stage fracking drilled in tight oil basins, only a very limited number of wells are being drilled in the conventional basins.
Natural Gas Full-Cycle Cost Components
September 3, 2021
Full-cycle cost components for natural gas includes; operating costs, royalties and production taxes, overhead, finding and development (F&D), producer return, and basis differential.
F&D and operating costs account for over 50% of the natural gas full-cycle costs while royalties & production taxes producer returns account for a little less than a third.
North American Natural Gas Cost Curve
July 29, 2021
Full-cycle cost curve for North American natural gas at Henry Hub illustrates the amount of natural gas resource available at various cost levels.
There is about 30 years of North American natural gas supply available at USD4 per MMBtu based on 2021 North American natural gas demand.
Full-Cycle Cost by Basin at Henry Hub
July 29, 2021
Full-cycle cost by basin and cost component at Henry Hub. Additional chart of Net full-cycle cost taking into account liquids uplift revenue.
The lowest full-cycle costs are realized at Haynesville and the highest is Arcoma; the average full-cycle cost is just under 4 USD/Mcf.
Natural Gas Full-Cycle Cost Changes (2021$)
September 1, 2021
Natural gas full-cycle cost changes, by basin, comparing the years 2013, 2016, and 2021.
The drop in full cycle costs for most natural gas basins dropped in 2021 compared to the 2013 and 2016 is partially due to increased new well productivity and a focus on liquid rich areas.