(Bloomberg) -- Oilfield-service costs for US shale drillers are expected to rebound in 2025, clawing back some of this year’s drop, as explorers expand the hunt for natural gas and extend sideways wells, according to industry consultant Enverus.
This year’s reduction in drilling and fracking, combined with the push to max out efficiencies, are seen lowering per-well costs for shale operators by 6.3%, Enverus said Tuesday in a report. But in 2025 those costs are expected to rise by 2.8% as drilling accelerates.
“We believe activity has bottomed and oilfield-service prices will bottom by the end of this year,” said Mark Chapman, oilfield-services principal analyst at Enverus. “An oversupply of fracture sand caused prices to fall this year, but an expected rebound in gas-directed drilling and a trend to longer laterals should boost prices in 2025.”
The number of onshore rigs drilling for oil and gas in the US has fallen 6% since the start of the year amid a wave of corporate takeovers and technical advancements that boosted output on a per-well basis. Total spending by North American drillers is forecast to drop 1% this year, according to Barclays PLC.
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