CALGARY, Alberta (Oct. 15, 2024) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released a new report that quantifies the quality of remaining drilling inventory across key North American plays.
North America is one of the few global jurisdictions that has meaningfully grown hydrocarbon production over the last 20 years. Thanks to the shale revolution, North America has added 15 million barrels a day of liquid hydrocarbon and 50 billion cubic feet a day of gas production to the global market since 2005. Looking forward, the globe will require the addition of approximately 7 MMbbl/d in liquids production and about 40 Bcf/d more in natural gas by 2030.
“We believe North America is well positioned to add approximately 2 MMbbl/d of liquid hydrocarbon and approximately 15 Bcf/d of natural gas production by the end of the decade at $70-80 WTI and $3.50-$4.00 Henry Hub,” says Alex Ljubojevic, EIR director. “Should lower prices persist, production growth in North America will be constrained.”
“Oil-directed drilling inventory that can generate adequate returns below $60 WTI is limited to about five years in the U.S. at current activity levels. At $70 WTI, our U.S. inventory estimates double,” says Dane Gregoris, EIR managing director. “The Canadian oil sands and Montney are home to 15 years of drilling inventory that can generate adequate returns below $60 WTI.”
Key takeaways from the report:
- The global economy will require an additional ~7 MMbbl/d of liquids production and ~40 Bcf/d more natural gas by 2030. North America can deliver 30%-40% of these incremental molecules at mid-cycle prices of $70-$80 WTI and $3.50-$4.00/MMBtu Henry Hub.
- Sub-$60/bbl WTI PV-50 breakeven oil resource has become considerably scarcer in the U.S. since 2022. This is driving global investors and operators to start looking outside of the U.S. for low-cost oily locations.
- Canadian plays like the oil sands and Montney are home to 15 years of sub-$60/bbl WTI PV-50 breakeven oil resource at current activity levels, nearly triple those of the U.S.
EIR’s analysis pulls from a variety of Enverus products including Enverus Intelligence® Research, Placed Well Analytics and Forecast Analytics.
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About Enverus Intelligence Research
Enverus Intelligence ® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. EIR is registered with the U.S. Securities and Exchange Commission as a foreign investment adviser. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers, and more than 40,000 suppliers. Learn more at Enverus.com.
Media Contact: Jon Haubert | 303.396.5996
