U.S. shale producers have collectively cut more than US$1.2 billion from spending plans while announcing increases in production with new projects due to come online.
One of the largest of these opportunities is BP’s recent discovery of a “significant new source” of shale gas in New Mexico at the Mancos Shale. The firm estimates about 2,000 horizontal opportunities housing 2.1 billion barrels of resource potential.
Oil and gas exploration firm Continental Resources was the latest to decrease its lower-bound estimate for investment this year to US$1.75 billion even as it aims to boost production “by as much as 30 percent.”
“We are raising our production estimates while lowering guidance for operating costs. The updated guidance metrics are expected to be achieved while targeting cash neutrality between US$45 and US$51 West Texas Intermediate crude oil with capital expenditures ranging from $1.75 billion to $1.95 billion,” said John Hart, chief financial officer at Continental.
Photo: USGS worker at Mancos shale. Credit: Wikimedia