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Record W2593555678 · doi:10.2118/0217-0035-jpt

Rebound To Test If Cost Cuts Will Last

2017· article· en· W2593555678 on OpenAlexaboutno aff
Stephen Rassenfoss

Bibliographic record

VenueJournal of Petroleum Technology · 2017
Typearticle
Languageen
FieldEngineering
TopicReservoir Engineering and Simulation Methods
Canadian institutionsnot available
Fundersnot available
KeywordsAgricultural economicsQuarter (Canadian coin)EconomicsPetroleum industryCommodityTruckService (business)BusinessFinanceEngineeringEconomyGeography

Abstract

fetched live from OpenAlex

One sign that things are getting better for US onshore exploration is the revival of talk about looming shortages and bottlenecks. By mid-year, sand to prop open fractures and trucks to pump those jobs are expected to be in short supply. Oilfield hands are already a scarce commodity. Those are solvable problems, but at a price some companies may find uncomfortably high. Surveys by branches of the US Federal Reserve Bank done in the fourth quarter of 2016 said that the break-even oil price for companies in Texas and surrounding states varies widely, and is generally greater than USD 50/bbl. The survey by the bank’s Dallas branch found that nearly 60% of the 141 companies surveyed said that it would take a price from USD 55/bbl to USD 65/bbl to “substantially increase” US crude oil drilling. And that was before service costs began rising. The smallest bar on the chart was for companies that can make money drilling when oil is USD 49/bbl or less. Some analysts publish estimates of average oil prices needed to profitably produce oil, but those averages mask a wide range of break-even levels. There are also differences among analysts on what percentage of the cost reductions made in the industry since 2014 will vaporize in the face of the double-digit service price increases that are expected this year in the unconventional services sector. “We hear every ratio possible,” said Jackson Sandeen, a senior research analyst for Wood Mackenzie, who said the savings are 40% from more efficient operations and 60% due to service sec-tor price concessions, which will shrink. Bain & Company clients put it at 60% of sustainable efficiencies and 40% from price concessions, said Jorge Leis, a Bain partner that leads its Americas Oil & Gas Practice. Rystad Energy said the average price needed to profitably produce oil in the US nonconventional sector has dropped by 50% since the downturn hit in late 2014, but a lot of that is based on supplier discounts. “Lower unit prices of service companies are a major reason for the drop,” said Jon Duesund, senior project manager for Rystad, during a recent briefing in Houston.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.001
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Simulation or modeling · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.819
Threshold uncertainty score0.528

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.001
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0010.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0010.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.013
GPT teacher head0.284
Teacher spread0.272 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designSimulation or modeling
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations1
Published2017
Admission routes1
Has abstractyes

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