Over 30,000 horizontal unconventional wells have been drilled in the US since the beginning of 2013. Let's take a look. The image above shows exactly where those wells were drilled, important production parameters derived from the whole cohort, as well as "type curves" for each stream, oil and gas.

This image shows the Estimated Ultimate Recovery for the average well drilled in the last couple of years... close to 224,ooo barrels of oil equivalent at a 20:1 value conversion, instead of a 6:1 BTU conversion, because when was the last time you paid your drilling costs with BTU? "Never" is a good answer.

The actual breakeven price for oil and gas is around $45.00/$2.25 for oil/gas. The average well cost was around $7 million durig the $100 days, and apocryphal knowledge says I can reduce it by 30%! That would be $4.9 million... I can't put it in here in good faith because the bills I have seen don't actually reflect a 30% decline, just the press releases. I gave it a roughly 15% decline to $6 million D/C/S today.

The above chart shows the sensitivities to chnages on well cost or commodity pricing.

I think the whole exercise is pretty interesting. Because the US has such a robust Oil Field Services sector, the price elasticity for services is high, and quick to respond. These price savings can have a nonlinear (in the good way) response on IRR.

These The tool we use here is in our Drillinginfo Analytics package, and typically used to hone in on areas or parts of plays to do operator comparative analysis. It is fun to see how it translates into really helping understand the whole US producibility capacity.