Canadian oil sands: Back in the limelight

CALGARY, Alberta (July 2, 2024) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS and generative AI company, has released a report that examines where Canadian oil sands assets fall on the North American cost curve.

“The often-overlooked Canadian oil sands represent nearly 40% of North America’s sub-$50 WTI breakeven oil resource,” said Dane Gregoris, managing director with EIR.  

“Oil sands businesses are particularly attractive to global investors today because of their long duration oil resource and newfound egress. This is especially relevant at a time where U.S. shale oil growth is slowing, and low-cost drilling inventory is becoming scarcer south of the border,” Gregoris said.

Key takeaways from the report:

• The Canadian oil sands represent nearly 40% of North America’s sub-$50 WTI breakeven undeveloped oil resource and offer a compelling opportunity for investors and producers to extend duration in E&P asset portfolios.
• Oil sands output exceeds 3 million barrels per day, the majority of which is extracted using steam-assisted gravity drainage (SAGD) or surface mining techniques.
• Integrated mining projects sit on the very low end of the North American cost curve while existing SAGD projects generally offer Permian-competitive resource breaking even between $40 and $50 WTI.

EIR’s analysis pulls from a variety of Enverus products including Enverus Intelligence® Research and Enverus Foundations®.

You must be an Enverus Intelligence® subscriber to access this report.

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 between 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 anytime, anywhere access to analytics and insights for more than 95% of U.S. energy producers and more than 40,000 suppliers. Learn more at Enverus.com.

Mdia Contact: Jon Haubert | 303.396.5996

View all press releases at Enverus.com/newsroom.

Enverus releases top 100 private E&P operators list

AUSTIN, Texas (June 25, 2024) — Enverus, the most trusted energy-dedicated SaaS and generative AI company, has released its annual list of the most prolific 100 private oil and gas producers in the U.S. based on gross operated production, well count and rig movements across last year. Continental Resources and Ascent Resources remain in the top two positions on the list, with Aethon Energy moving up to the third position, according to Enverus.

“Merger and acquisition activity, particularly those involving public buyers and private sellers during 2023, have reshuffled our rankings,” said Justin Lepore, lead consultant at Enverus and manager of Enverus’ Top 100 Private Operators list. “Inventory count and quality has also significantly driven private operator valuations, and in many cases, there has been a goal of growing production to become more attractive to takeout targets.”

“Regionally we see shifts too. In Appalachia, the acquisition of Rockcliff Energy by TG Natural Resources combined their positions into one, creating space for a new entrant onto our list. Chesapeake’s asset sales in the Gulf Coast led to Wildfire and INEOS Energy joining the list this year as well. In the Bakken, asset sales by Ovintiv and Crescent Point resulted in significant upward moves for Grayson Mills and Kraken, while a Permian acquisition by VTX Energy and the entry of public-Civitas into the Permian reshuffled the list, with Tap Rock assets moving down and Hibernia being removed. Overall, it might be Rockies-weighted operators who saw the biggest shift as they now make up a lesser proportion of the top 20 names on the list, with new additions from Permian and Mid-con operators filling that gap,” Lepore said.

“A list like this also shows the contribution from private operators, which accounted for approximately 36% of Lower-48 oil production in 2023, with around 70% of this volume coming from the Top 100 on the list. Production is increasingly held by large, public operators,” Lepore said.

The list, compiled utilizing Enverus Foundations® data from Enverus Foundations® and Activity Analytics, also includes a breakdown of liquids and gas production, total company well counts, recent rig programs and comparison to their rankings the previous year. The list was featured in Upstream Pulse, a bi-monthly report that covers exploration and production, deals and capital markets for the North American and global oil and gas sector.

About Enverus
Enverus is the most trusted energy-dedicated SaaS company, with a platform built to maximize value from generative AI, offering anytime, anywhere access to analytics and insights. These include benchmark cost and revenue data sourced from more than 95% of U.S. energy producers and more than 40,000 suppliers. Our platform, with intelligent connections, drives more efficient production and distribution, capital allocation, renewable energy development, investment, and sourcing. Our experienced industry experts support our customers through thought leadership, consulting, and technology innovations. We provide intelligence across the energy ecosystem: renewables, oil and gas, financial institutions, and power and utilities, with more than 6,000 customers in 50 countries. Learn more at Enverus.com.

Surfing Europe’s green wave

CALGARY, Alberta (June 12, 2024) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS and generative AI company, has released new research that evaluates Europe’s clean hydrogen landscape, analyzing how policies and incentives drive adoption and comparing industry activity to European Union (EU) targets. Key challenges noted in EIR’s report include achieving 2030 targets, scaling up production, accelerating infrastructure development and securing firm investments to cement Europe’s leadership in clean hydrogen.

“The EU is unlikely to meet its 2030 clean hydrogen transportation and import targets without a concerted effort to begin construction on new pipeline and port infrastructure. Without it, clean molecules from export markets like North America could be left stranded,” said Alex Nevokshonoff, analyst at EIR. “Europe must address three key elements to successfully implement clean hydrogen into its energy landscape,” added Donald Campbell, Global Scout – Global Manager for Energy Transition at Enverus and contributor to the report.

“First, there must be a greater focus on the development of the EU’s hydrogen transmission infrastructure to ensure efficient distribution and integration. Second, increasing the number of hydrogen projects reaching FID is essential to move the industry from ideation to implementation. Lastly, enhancing incentive values and simplifying funding eligibility can help lower green hydrogen production costs. Without sufficient funding mechanisms, green hydrogen cannot economically compete with conventional fuels,” Campbell said.

Key takeaways from the report:

• Europe’s hydrogen transmission and port infrastructure targets are unlikely to be met. Only 12 km of its hydrogen transmission network has been commissioned to date, compared to its 2030 target of 28,000 km.
• Although green H2 production is on the rise throughout Europe, current efforts are not enough to meet the RePowerEU 2030 target of 10 mtpa, with most projects currently sitting in the non-binding/pre-FID stage. A “less talk, more action” approach is needed to transform the projects from ideation to implementation.
• Europe leads the U.S. in green hydrogen projects while the U.S. focuses on blue hydrogen, supported by the 45Q tax credit. Europe’s green focus is driven by aggressive renewable energy/emissions targets, uninhibited by oil and gas prices.
• Green hydrogen production costs remain high and uncompetitive with conventional fuels without substantial financial support mechanisms. Strategic subsidies can help bridge this cost gap.

EIR’s analysis pulls from a variety of Enverus products including Enverus Intelligence® Research.

You must be an Enverus Intelligence® subscriber to access this report.

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 between 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 anytime, anywhere access to analytics and insights for more than 95% of U.S. energy producers and more than 40,000 suppliers. Learn more at Enverus.com.

Media Contact: Jon Haubert | 303.396.5996

View all press releases at Enverus.com/newsroom.

Operational efficiencies are driving cost excellence in North America’s onshore drilling

CALGARY, Alberta (June 5, 2024) — Enverus Intelligence Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS and generative AI company, has released new research that analyzes which oil and gas plays show the greatest rate of increase in drilling speeds and whether well costs correlate with drilling speeds. In addition, the report looks at how well designs are affecting drilling efficiencies.

“Cost reduction efforts to improve capital efficiency are top of mind for every operator these days. Drilling speed improvements, driven by larger-scale operations and changes to wellbore design, have a measurable impact on well costs, and operators that have the best drilling performance tend to have the lowest costs in a basin,” said Steve Diederichs, a director at EIR and author of the new report.

“Rigs across major unconventional basins last year were 30% more efficient at drilling productive lateral feet per total rig day compared to 2019. In the Permian, the Texas-New Mexico play that produces the most oil in America, the improvement jumped to 35%” Diederichs said.

Key takeaways from the report:

• Rigs across major unconventional basins last year were 30% more efficient at drilling productive lateral feet per total rig day compared to 2019.
• Drilling speeds are better correlated with the E&P than the rig provider. We see reasonable correlations between faster drilling speeds and lower-cost operators in both the Permian and Eagle Ford.
• A higher well count on a pad enables batch drilling and is typically associated with faster drilling speeds. The Midland screens more positively than the Delaware in terms of operators pivoting to larger-scale, pad-level operations.

EIR’s analysis pulls from a variety of Enverus products including Enverus Intelligence® Research, Activity Analytics, DSU Analytics and Forecast Analytics.

You must be an Enverus Intelligence® subscriber to access this report.

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 between 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 anytime, anywhere access to analytics and insights for more than 95% of U.S. energy producers and more than 40,000 suppliers. Learn more at Enverus.com.