Shale drilling costs rise

The domestic oil and natural gas industry expenditures for shale-gas drilling have increased by $119 million in 2015, according to the American Petroleum Institute (API).

The API 2015 Joint Association Survey on Drilling Costs showed the changes between 2014 and 2015. 

Approximately 28,809 oil and natural gas wells were drilled in 2015. The cost of those wells was approximately $122.8 billion, according to an API press release.

Although the number of wells drilled decreased by 37.6 percent and expenditures dropped by 27.2 percent between 2014 and 2015, the number of shale-gas wells remained constant. Nearly half of all expenditures on drilling in 2015 were for shale-gas wells.

In addition to the money spent on shale gas drilling, natural gas expenditures accounted for 24.8 percent of costs and oil accounted for 64.5 percent of drilling costs in 2015. Domestic development costs were $109.6 billion and exploratory well costs were approximately $5.6 billion.

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American Petroleum Institute

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