According to a recent report from CERA, upstream costs have reached a record high due to continued high activity levels and tightness in the upstream services and equipment market. In the past six months prices have increased 9.2%, 3.2% higher than the previous six months. Overall, prices have increased more than 100% since 2000. While the past two months have shown a more moderate growth, this is bad news for companies facing dwindling commodity prices. But it could be worse. As a nod to the holiday season, I’ve composed a small ditty. The cost of 42 reservoir models or fracture treatments alone would be enough to bust any budget, not to mention 35 jack-up rigs. On the first day of Christmas my contractor sold me A triple-combo logging string. On the second day of Christmas my contractor sold me Two seismic surveys and a triple-combo logging string. On the third day of Christmas my contractor sold me Three tricone bits, two seismic surveys, and a triple-combo logging string. On the fourth day of Christmas my contractor sold me Four geophones, three tricone bits, two seismic surveys, and a triple-combo logging string. On the fifth day of Christmas my contractor sold me Five jackup rigs! Four geophones, three tricone bits, two seismic surveys, and a triple-combo logging string. On the sixth day of Christmas my contractor sold me Six reservoir models, five jackup rigs! Four geophones, three tricone bits, two seismic surveys, and a triple-combo logging string. On the seventh day of Christmas my contractor sold me Seven fracture treatments, six reservoir models, five jackup rigs! Four geophones, three tricone bits, two seismic surveys, and a triple-combo logging string. On the eight day of Christmas my contractor sold me Eight drillstem tests, seven fracture treatments, six reservoir models, five jackup rigs! Four geophones, three tricone bits, two seismic surveys, and a triple-combo logging string. On the ninth day of Christmas my contractor sold me Nine subsea tiebacks, eight drillstem tests, seven fracture treatments, six reservoir models, five jackup rigs! Four geophones, three tricone bits, two seismic surveys, and a triple-combo logging string. On the tenth day of Christmas my contractor sold me Ten storage systems, nine subsea tiebacks, eight drillstem tests, seven fracture treatments, six reservoir models, five jackup rigs! Four geophones, three tricone bits, two seismic surveys, and a triple-combo logging string. On the eleventh day of Christmas my contractor sold me Eleven new employees, ten storage systems, nine subsea tiebacks, eight drillstem tests, seven fracture treatments, six reservoir models, five jackup rigs! Four geophones, three tricone bits, two seismic surveys, and a triple-combo logging string. On the twelfth day of Christmas my contractor sold me Twelve heavy lift boats, eleven new employees, ten storage systems, nine subsea tiebacks, eight drillstem tests, seven fracture treatments, six reservoir models, five jackup rigs! Four geophones, three tricone bits, two seismic surveys, and a triple-combo logging string. Happy holidays to all!