News Release

Shale maturity driving increase in cost of supply

Tier 1 inventory is limited, but ample Tier 2-4 inventory should alleviate fear of North American production decline

byEnverus

CALGARY, Alberta (Sept. 26, 2023) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS platform, has released a new report that quantifies the remaining drilling inventory across key North American shale plays.

“We see the cost of supply continuing to increase for North American shale producers over the next five years as the industry moves from developing Tier 1 to Tier 2-4 locations,” said Dane Gregoris, managing director at EIR. “However, ample Tier 2-4 inventory should alleviate fears of a structural decline in North American production or activity levels over the next 15 years.”

Key takeaways from the report:

  • EIR estimates six years of Tier 1 (sub-$45/bbl WTI breakeven) locations remaining across North America at today’s activity levels.
  • Ample Tier 2-4 inventory should alleviate fears of a structural decline in U.S. production or activity levels over the next 15 years.
  • EIR projects the North American inventory-weighted average breakeven will rise by $6/bbl WTI ($0.30/MMBtu HH) to $57/bbl WTI ($2.85/MMBtu HH) by 2028, assuming no changes to well costs.
Enverus press release - graph with cost curve comparison including 2028 estimates

EIR’s analysis pulls from a variety of Enverus products, including Placed Well Analytics.

Members of the media should contact Jon Haubert to schedule an interview with one of Enverus’ expert analysts.

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View all Enverus news releases at Enverus.com/newsroom.

About Enverus
Enverus is the most trusted, energy-dedicated SaaS platform, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 98% of U.S. energy producers, and more than 35,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment and sourcing; and our experienced industry experts support our customers through thought leadership, consulting and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with more than 6,000 customers in 50 countries. Learn more at Enverus.com.

About Enverus Intelligence Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide.

Media Contact: Jon Haubert | 303.396.5996

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