USA Oil/Gas Production Cost: Recent Changes

M.A. Adelman


M.A. Adelman,¬†February 1991During 1984-1989, oil development investment cost in the USA fell, but only because of lower activity. The whole cost curve shifted unfavorably (leftward). In contrast, natural gas cost substantially decreased, the curve shifting rightward. This is an additional reason why measures of cost or value “per barrel of oil equivalent”””” should be avoided.”””