NEW ORLEANS (Reuters) - U.S. shale oil producer Concho Resources Inc said on Monday the cost and time needed to drill a well will keep falling, despite concerns that improvements from technology and other factors had reached a limit.
The average time needed to bring a shale well online has dropped sharply in recent years as companies have grown more efficient.
Concho now drills wells that are 53 percent longer than in 2015 for 22 percent less, allowing it to extract more oil for less. Some investors have grown concerned that such improvements could end due to geological or technological limitations.
“We’ve seen very significant increases in efficiencies,” Chief Executive Jack Harper said at the Scotia Howard Weil energy conference in New Orleans. “The changes won’t be this dramatic and this obvious in the future, but there are many small improvements that can occur over the next two to three years.”
Reporting by Ernest Scheyder; Editing by Richard Chang