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Anadarko sees 2018 Permian service costs rising while EOG foresees drop

Published 03/27/2018, 11:10 AM
© Reuters.  Anadarko sees 2018 Permian service costs rising while EOG foresees drop
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  • Anadarko Petroleum (APC -0.5%) expects 10%-15% increases in service costs this year for its operations in the Permian Basin, CEO Al Walker says at the Scotia Howard Weil energy conference in New Orleans.
  • “We’re just going to see some natural creep in service costs that will just have to work its way into the system,” Walker says. “If oil prices rise higher, that will increase the pressure on prices.”
  • At the same conference, EOG Resources (EOG -1.1%) says it expects its Permian service costs to drop this year, although the company sources many fracking supplies itself, which helps to defray costs.
  • EOG expects its service costs to fall 9% this year in the Permian Basin and 4% in the Eagle Ford shale, CEO Bill Thomas says.
  • Now read: EOG Resources: Perhaps A Good Time To Move On?


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