Size matters when determining whether energy companies can truly turn profits in U.S. shale oil and gas drilling, according to a new report from the Norwegian research firm Rystad Energy.
Visit Oilfield1 Shop
That need for scale is why the largest Big Oil majors like Exxon Mobil and Chevron and the biggest energy independents have begun to dominate the top shale plays, especially West Texas’ booming Permian Basin.
Outside observers have continued to question the long-term profitability of shale oil and gas after the initial investments, debt accumulation, operations costs and the frequent overestimates of well productivity. While many smaller players have failed to make money, Rystad determined that the average Permian well is profitable and that those players with the most scale and acreage will be the winners.
Categories: News
