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"Penn West Petroleum, based in Calgary, Alberta, is an independent Canadian energy company focused on the exploration and production of oil and natural gas resources in Saskatchewan, Alberta, and British Columbia. At the end of 2015, the company reported proven reserves before royalties of 208 million barrels of oil equivalent. Daily production averaged 86,000 barrels of oil equivalent in 2015,... see more

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PENN WEST PETROLEUM LTD. > Shale Cost Is Rising

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Post by makedonka on May 01, 2017 10:05am

Shale Cost Is Rising

"Oil rig counts are rising but so are costs. Crude oil prices are modestly lower on weak Chinese PMI data and a rising rig count but the reality of the limitation of shale may start to become painfully obvious. While the number of active oil rigs increased for the 15th week in a row by 9 rigs, the cost of those wells increased by 7 percent between November and March according to the Bureau of Labor Statistics. That is the first significant increase in drilling costs in three years and that should continue to rise. With the rapid increase in drilling rigs, oil service and labor costs will go higher."

https://blog.pricegroup.com/2017/05/01/shale-cost-is-rising-the-energy-report-050117/