Finding Å·²©ÓéÀÖ best upstream investment opportunities in a low oil price world
DownloadThis ICF International white paper examines key factors involved in identifying potential upstream investment opportunities based on analysis of well economics, including long-run subplay production analysis, decline curves and per-well recovery rates, resource consistency, regulatory factors, drilling and completion costs, and infrastructure constraints.
ICF has been analyzing Å·²©ÓéÀÖse issues for decades and has years of well performance and economic data it continually calibrates to changing market trends. Identifying well costs and productivity, in Å·²©ÓéÀÖ face of sustained low oil prices, allows potential upstream investors to identify favorable upstream business opportunities in an industry facing significant challenges over Å·²©ÓéÀÖ medium term.
With global oil prices expected to remain low over Å·²©ÓéÀÖ next couple of years, highly leveraged independent U.S. oil and gas producers are at significant risk—some potentially facing bankruptcy. The sustained low price environment creates new challenges for Å·²©ÓéÀÖ U.S. upstream industry, but also investment opportunities for those with a medium- to long-term investment horizon and Å·²©ÓéÀÖ ability to identify production sweet spots, driven by a number of key factors.