North American exploration and production (E&P) “capital intensity,” otherwise defined as finding and development (F&D) costs, appears likely to be 20% higher than average this year, twice the long-term 10% historical trend but less than a year ago. Higher oilfield service costs are pushing up F&D costs, said energy analyst John Gerdes, but the rise also follows the continued growth in domestic resource plays, most notably, shale gas.
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Rita Shuts In Most Offshore Production, Threatens Onshore Facilities
Almost all of the oil produced in the Gulf of Mexico (GOM) and 72% of the natural gas was shut in as of Friday, at the same time Hurricane Rita dropped in intensity from a Category 4 to a Category 3 less than 200 miles offshore in the Gulf of Mexico. Rita is “a dangerous hurricane,” according to the National Hurricane Center, and its core was poised to strike at daybreak Saturday around the “Golden Triangle” of Texas, home to some of the largest refineries and chemical manufacturers in the country.
September 26, 2005