OilPrice - It's Getting Increasingly Expensive To Boost U.S. Oil Production

April 20, 2022 – OilPrice.com

It's Getting Increasingly Expensive To Boost U.S. Oil Production

By: Tsvetana Paraskova

At public shale firms, capital budgets for 2022 are now up by an average of 23 percent over 2021, RBN Energy says.

"That increase seems substantial, but about two-thirds (15%) results from oilfield service inflation," the commodity analysts said. 

"There is less than meets the eye in producers' planned 23% capex increase and 8% boost in production," RBN Energy noted earlier this month.

Producers' "plans do not represent a strategic shift from the maintenance-level investments they've been making the past few years." 

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