Sorry, no relief in sight.

Don’t expect the cost of E&P to go down anytime soon, according to Candida Scott, a CERA director who spoke at the “Capital Costs: How High? How Long?” breakfast.
Using the IHS/CERA Upstream Capital Costs Index, (see Chronicle story on the index here) Scott said there’s no sign the rise in rig rates, labor costs and the seven other items that go into the index will drop anytime soon.
Oil prices should stabilize at or above $50 for the balance of the year and steel prices should also stabilize, but the overall index could rise from 8 to 12 percent this year, Scott said.
Not exactly an uplifting way to start the conference.