What are lifting costs?
Lifting costs, also referred to as production costs, are expenses incurred to operate wells during production. Lifting costs also include any maintenance expenses during a well’s production lifespan after drilling is complete. Lifting cost is derived by adding LOE (lease operating expenses), workover costs, and production taxes.
ConocoPhillips’s lifting costs
In 3Q16, ConocoPhillips (COP) reported lifting costs of ~$11.78 per boe (barrel of oil equivalent), which is ~17.0% lower than 3Q15. Sequentially, ConocoPhillips’s lifting costs in 3Q16 rose ~1.0% compared to 2Q16.