$1.5T in Shale Projects “At Risk” Unless Drillers Lower Costs More

profit loss riskIn another sobering bit of analysis by global research firm Wood Mackenzie, the company tells drillers that while their hammering of the supply chain (like oilfield services companies) to reduce prices by 20-30% will help, it will only result in an overall 10-15% savings. If drillers want to keep their drilling projects “viable” (i.e. profitable), “additional measures” will be needed to manage costs. Wood Mackenzie researchers have a few suggestions for how drillers can continue lowering costs to the point their projects are, once again, turning a profit in a low oil and gas price world. If they don’t lower costs more, there’s a mind-blowing $1.5 trillion worth of shale projects that are “at risk” of not happening…

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