TY - GEN
T1 - Impacts of price differentials, taxation, and costs on shale gas drilling
T2 - SPE/IAEE Hydrocarbon Economics and Evaluation Symposium 2016
AU - Ikonnikova, Svetlana
AU - Gülen, Gürcan
AU - Browning, John
N1 - Funding Information:
This research was conducted within the Bureau of Economic Geology (BEG), Jackson School of Geosciences, The University of Texas at Austin. This study is part of a program funded by the Alfred P. Sloan Foundation called "Role of Shale Gas in the U.S. Energy Transition: Recoverable Resources, Production Rates, and Implications." The research team includes Scott W. Tinker (Principal Investigator), Svetlana A. Ikonnikova (Co-Principal Investigator), John Browning, Gürcan Gülen, Frank Male, Eric Potter, Katie Smye, Emilian Vankov, and Guin McDaid. We also thankful to Bridget Scanlon, Robert Reedy, and Zachary Petrou for their help in processing data on fluids used in hydraulic fracturing. For individual potential conflicts see http://www.beg.utexas.edu/shale/. We thank IHS and DrillingInfo for access to their databases. We are also thankful to a number of operating companies for their communication and data sharing. This publication is authorized by the Director of BEG.
PY - 2016
Y1 - 2016
N2 - We explore the comparative impacts of capital costs, price differentials, and state fiscal policies on economic decision to drill, paying close attention to the decline of shale well production. We use a standard cash flow model for well economics and perform empirical analysis using actual production and completion data for Marcellus wells, cost and tax payments information from Pennsylvania, West Virginia and New York, and basis differentials in different parts of the play. Wells drilled in similar rock quality areas can have different economic value owing to completion choices and associated costs, state fiscal regimes, and market dynamics as reflected in prices realized by the producers at the wellhead.
AB - We explore the comparative impacts of capital costs, price differentials, and state fiscal policies on economic decision to drill, paying close attention to the decline of shale well production. We use a standard cash flow model for well economics and perform empirical analysis using actual production and completion data for Marcellus wells, cost and tax payments information from Pennsylvania, West Virginia and New York, and basis differentials in different parts of the play. Wells drilled in similar rock quality areas can have different economic value owing to completion choices and associated costs, state fiscal regimes, and market dynamics as reflected in prices realized by the producers at the wellhead.
UR - http://www.scopus.com/inward/record.url?scp=84977261813&partnerID=8YFLogxK
U2 - 10.2118/179985-ms
DO - 10.2118/179985-ms
M3 - Conference contribution
AN - SCOPUS:84977261813
T3 - SPE Hydrocarbon Economics and Evaluation Symposium
BT - Society of Petroleum Engineers - SPE/IAEE Hydrocarbon Economics and Evaluation Symposium
PB - Society of Petroleum Engineers (SPE)
Y2 - 17 May 2016 through 18 May 2016
ER -