Operators

Lease Operating Expenses

byEnverus
October 27, 2025

Lease Operating Expenses

Lease operating expenses (LOE) refer to the recurring costs associated with operating and maintaining oil and gas production assets. These include labor, equipment maintenance, utilities, insurance, regulatory compliance and environmental protection. LOE is a key metric for evaluating operational efficiency and profitability.
Enverus Press Release - Decoding CCUS project success

Frequently Asked Questions

What are the main components of LOE in oil and gas operations?

LOE typically includes labor costs, maintenance and repairs, fuel and utility expenses, environmental compliance, insurance and administrative overhead. These costs are incurred regularly and directly impact the net operating income of a producing asset.

How does LOE differ from capital expenditures (CapEx)?

LOE covers day-to-day operational costs, while capex refers to long-term investments in infrastructure, equipment and development. LOE is expensed in the current accounting period, whereas capex is capitalized and depreciated over time.

 

Why is managing LOE critical for profitability?

Efficient LOE management helps reduce unnecessary expenses, optimize resource use and improve margins. Operators often benchmark LOE across assets to identify cost-saving opportunities and enhance operational performance.

 

What strategies can reduce LOE in oil and gas operations?

Strategies include implementing energy-efficient technologies, automating processes, optimizing maintenance schedules, negotiating supplier contracts and investing in workforce training. These measures can significantly lower operating costs and improve asset performance.

Related Solutions

solution
Operators

Oil & Gas Asset Development – Evaluation, Inventory & Development Planning

solution
Operators

Streamline Operations

Optimize your field operations and streamline cash management with our workflow automation solutions. Let us help you better track operations, eliminate paper ticket loss and reduce invoice processing time to accelerate payments.

solution
Financial Services, Midstream+4
  • Minerals
  • Oilfield Services
  • Operators
  • Power & Renewables

Energy Transition Analytics With Enverus

Arm yourself with the knowledge to inform strategic decisions and grow your business with one source for insights across oil and gas, renewables, carbon capture and ESG. Read more about Energy Transition solutions.

solution
Operators

Evaluate, Acquire, Divest

Complete a step-by-step analysis faster, from initial screenings to technical deep dives, for an investment strategy fueled by data.

solution
Financial Services, Midstream+2
  • Minerals
  • Operators

Fusion Connect

Securely blend your internal, high-resolution data with Enverus analytics-ready data sets and models. Read more about Fusion.

solution
Operators

Develop & Optimize

Our comprehensive data and analytics allow you to learn from existing producing wells to improve performance of future developed wells.

solution
Operators

Source, Procure & Invoice With Source-to-Pay

Save time and get spend under control with automated procurement workflows from order to invoice in one powerful platform made for oil and gas operations.

solution
Operators

Design & Develop

product
Financial Services, Midstream+4
  • Minerals
  • Oilfield Services
  • Operators
  • Power & Renewables

Enverus PRISM – complex energy data into fast, confident decisions.

product
Financial Services, Midstream+2
  • Minerals
  • Operators

Oil and Gas M&A

Analyze more deals, spot emerging opportunities and stay ahead of the competition with the industry’s most comprehensive M&A database for oil and gas. Read more about Oil & Gas M&A Analytics.

product
Operators

Conventional Oil and Gas Solutions

Solutions to help conventional operators find opportunities, expedite and improve due diligence and stay up to date on market activity and trends.

product
Financial Services, Midstream+1
  • Operators

Field Development Studio

Discover top-notch field development planning services. Enverus provides comprehensive well planning for forward-thinking investors.

product
Financial Services, Midstream+2
  • Oilfield Services
  • Operators

Enverus Foundations® | Carbon Innovation

Learn how Carbon Innovation Foundations helps streamline your strategic decisions with actionable insights and centralized data for molecule-based project tracking and viability, updated daily through Enverus PRISM®.

product
Operators

Enverus RFx | Oilfield Bidding Software Built for Oil and Gas

Enverus RFx: AI-powered sourcing for oilfield bidding. Create/manage bids, expand your supplier network, and get transparent sourcing insights.

product
Operators

Foundations

Enverus Foundations brings analytics-ready data into an intuitive platform, enabling you to dive straight to higher value analysis and insights.

product
Midstream, Oilfield Services+1
  • Operators

Activity Analytics

Get near-real time insight into all phases of pre-production operation, from pad detection and frac crew activity to DUCs over time, rig activity and cycle times, you can stay one step ahead with differentiated insights available up to two months ahead of public filings.

product
Operators

OpenTicket

OpenTicket reduces the workload for AP and operations staff by allowing you to generate and approve digital field tickets on a single platform.

product
Midstream, Oilfield Services+1
  • Operators

ERA Analytics in Energy

Navigate the evolving emissions and regulatory landscape with data-driven confidence with Enverus Emissions and Regulatory Analytics.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert