E&P: Will Production Resilience Continue in 2016?


E&P Companies Did More With Less In 2015

The year-long depression in oil and natural gas prices helped spur continued innovation in the energy space in 2015. E&P companies drove down well costs and operational expenses to deliver wells that remained economic, with far lower pricing, than imagined possible heading into last year. Industrywide, horizontal well costs declined by as much as 35 percent by late 2015 (vs. mid-2014) while lease operating costs were down more than 10 percent for many U.S. E&P operators.
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Need for New Ideas, Even in a Time of Tight Cash


The collapse in oil price in the second half of 2014 has brought a sharp cash crunch to the industry. R&D spending in oil and gas rose over the last decade, following prices and as companies have taken on more complex and challenging projects. By 2013, leading researchers and developers in the oil and gas sector were spending over $15 billion annually, double that of a decade earlier.
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How Technology Can Save the Day for E&P Companies


The Current State of Industry Debt
 
During the decade-long energy boom, U.S. E&P companies worked hard to boost their output substantially which in turn, also increased their debt loads. As the price of oil falls, many E&P companies are finding it difficult to profit on lesser performing wells and maintain their debt obligations. This has left most E&P companies attempting to line up billions of dollars in emergency financing ahead of potential rounds of cuts to their revolving loans.
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New Approaches to an Old Industry – Smart Oil and Gas Field of the Future


While oil and gas prices fluctuate with the latest economic report, the challenges facing companies extracting those fuels are less volatile. Instead, those challenges could best be characterized as complex and well-known.
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