August 11, 2021
Permian oil full-cycle costs at West Texas Intermediate (WTI) range from a low of 36.00 USD/Bbl for wells with an Initial Productivity (IP) greater than 2000 Bbl/d to a high of 114.00 USD/bbl for wells with an IP of under 400 Bbl/d.
Operating costs range from 9.00-10.50 USD/bbl while royalties & taxes and overhead represent about 17.50 USD/bbl. F&D costs range from 4.50-51.00 USD/bbl and the 15% producer return ranges from 3.00-32.00 USD/bbl. The WTI differential is 2.60 USD/bbl.
Full-Cycle Cost Curve
This chart shows the Permian oil full-cycle cost curve at West Texas Intermediate (WTI). Incorrys analysis shows that there is 48 B Bbl (billions of barrels) of oil resource available at below 50 USD/Bbl and an additional 15 B Bbl at 70 USD/Bbl.