US oilfield costs fall

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 […]

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By Jacqueline Echevarria

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.”