Rise in activity comes with increase in costs

COMPANIES working the US onshore tight oil plays are bracing themselves for cost inflation as activity levels increase.

 However, the impact of the increases is likely to be felt differently across different plays and also by operators versus service companies.

Operators have estimated their costs will rise by 10% to 20% while service companies have estimated they could increase prices by 15% to as much as 40%, according to research from consultancy Wood Mackenzie.