[L48 Cost Analysis] How did operators cut $1.8B in capex without slowing production?

Dear Subscriber,

In this week’s newsletter, we break down what $1.8B in capex cuts means for Lower 48 operations. Spoiler: output didn’t flinch. Our Q2 2025 cost analysis reveals how operators are holding production steady despite rising casing costs and market uncertainty. The data shows efficiency is winning, for now. Access the report (subscribers only).

Meanwhile, our latest AI adoption survey points to a tipping point. More engineers are recognizing the limits of legacy forecasting: 74% now say type curves are biased and slow, up 13 points from 2024. In a head-to-head comparison, 60% said AI performs better. Just 11% stood by the old way. Read the blog post summary!

Also in this week's newsletter:

• [Company News] Novi Labs raises $35M from Invictus to accelerate product innovation and scale our energy intelligence platform. Read the full PR

• [Hart Energy Article] 3-mile Powder River laterals are outperforming Permian wells? Novi Labs data says yes

• [Webinar] Who’s pushing proppant limits in the Haynesville? And why it matters for ROI

• [URTeC Papers] Explore all our 2025 technical papers in one place—now available in the Resource Hub.

Enjoy the read!

Q2/2025 L48 Cost Analysis

$1.8B slashed from capex. Production held the line.

Operators are doing more with less, efficiency gains and pricing pressure are neutralizing inflation, even with tariffs driving casing costs up 10%

Get the full read on cycle times, well cost trends, and how operators are navigating deflation and uncertainty.

The State of AI Adoption in Reservoir Engineering - 2025

Confidence in traditional forecasting workflows is fading, and fast.

Last year, 40% of reservoir engineers said they trusted type curve methods. This year, only 23% still do. The drop is sharp, but not surprising.

More engineers are recognizing the limitations built into legacy forecasting approaches. In our 2025 survey, 74% said type curves are biased and slow, up 13 points from 2024. And when we asked engineers to compare traditional methods with ML-driven forecasting head-to-head, the results weren’t even close: 60% said AI performs better. Just 11% stood by the old way.

The takeaway? This isn’t just a shift. It’s a tipping point.

Explore All Our URTeC 2025 Technical Papers in the Resource Hub

Amazing news: We just raised $35M from Invictus!

This milestone marks a huge step forward as we scale our mission to redefine how capital decisions are made across the energy sector, moving from legacy guesswork to AI-driven intelligence.

With this funding, we’ll deliver even more value to our customers, accelerating product innovation, expanding into new markets, and scaling our go-to-market efforts. We’re also doubling down on strategic acquisitions to integrate complementary technologies and data, all to ensure our customers stay ahead of the curve.

We're incredibly proud of our team's achievements and excited for what's ahead!

Thank you to our partners at Invictus for believing in our vision.

Here’s to building the energy OS of the future.

Anschutz Charges Ahead with 3-Mile Powder River Laterals

Anschutz just drilled a 3-mile Mowry lateral that delivered 279,000 barrels in under a year.

According to Novi Labs data featured in the article, that outperforms many first-year Permian wells.

Proppant Intensity Trends in the Haynesville: Who’s Pushing the Limits?

As proppant intensity quietly climbs across the Haynesville, operators are making big bets on frac design. But it’s not just about going bigger, it’s about knowing when and where it makes sense.

If your team isn't tracking design shifts across competitors, you might be missing signals that impact ROI and performance benchmarking.

Ready to see what’s under the hood and how Novi Labs can help you get valuable insights?

Book your personalized demo with our team: https://novilabs.com/request-a-demo/