US oilfield costs fall

US oilfield costs fall

by Big Mac

oil-well

Oilfield costs in the US have fallen as a result of lower oil prices.
According to the Energy Information Administration (EIA), oil prices have declined by more than 50% from June 2014 to January 2015, before increasing slightly in spring 2015.
It showed rates from drilling activities – which represents service fees for contractors to drill oil and gas wells – declined by 19.6%.
The rates for support activities, which include the surveying, cementing, casing and treating wells, fell by 1.4%.
The report also said the price of sands, primarily used for fracking, were 12.5% lower.
The EIA stated:”The price reductions reflect both weakened demand for the services offered and heightened industry competition to maintain market share.”