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(Wed, 23 Mar 2016) Average 2015 well drilling and completion costs in five onshore areas decline 25% and 30% below their level in 2012

The U.S. Energy Information Administration (EIA) commissioned IHS Global Inc. (IHS) to perform a study of upstream drilling and production costs. The IHS report assesses capital and operating costs associated with drilling, completing, and operating wells and facilities. The report focuses on five onshore regions, including the Bakken, Eagle Ford, and Marcellus plays, two plays (Midland and Delaware) within the Permian basin, as well as the offshore federal Gulf of Mexico (GOM). The period studied runs from 2006 through 2015, with forecasts to 2018. Among the report?s key findings are that average well drilling and completion costs in five onshore areas evaluated in 2015 were between 25% and 30% below their level in 2012, when costs per well were at their highest point over the past decade.