Keeping US shale afloat

Improving drilling and completion efficiency is crucial for the industry to accelerate cashflow and remain economically viable

Unconventional drilling has come of age, and US independents are more effective than ever. Average feet drilled per day has risen by nearly 20pc since 2015, a testament to the technical advances fuelling the shale revolution. Yet unconventional E&P companies have consistently suffered negative cash flow and weak balance sheets, even during price upswings. To achieve financial sustainability, companies need to focus on capital efficiency across the value chain. The recent collapse in oil prices brings a sense of urgency to this endeavour. Here, we will consider how to embed capital efficiency in well delivery and suggest tactical improvements for independents to adopt. Creating value in w