Post Tagged with: "OPEX"

Why Russia’s Opex Fell 30%

Why Russia’s Opex Fell 30%

Running out of time Oil and gas producers have worked diligently to reduce the cost of their operations following the fall in crude oil prices at the end of 2014. Without $100 oil, E&P companies the world over were forced to find ways to cut costs in order to make their operations profitable. On the whole, producers have reduced opex per barrel is down 9%, according to information from Wood Mackenzie, but a close look shows that this in large part due to Russia skewing the numbers. Russia has reduced opex by 30%, far exceeding the average. If it is removed from the dataset, the average global reduction in opex is just 4%, and it still varies greatly by region. Canada has reduced opex by 18%, while Wood Mackenzie has U.S. onshore opex unchanged between 2014 and 2015. The change in opex also varied depending on the type of operator,[Read More…]