Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: entropy12

It seems that most North American Shale oil producers are just breaking-even between $75 and $85, so this would still mean to say that there are a lot of companies heavily in debt without a chance to become profitable soon


9 posted on 04/30/2015 12:55:45 PM PDT by Opintel
[ Post Reply | Private Reply | To 3 | View Replies ]


To: Opintel

I think those prices are from the high price days when more marginal areas were worthwhile to produce. When a company only goes after the sweetspots in the plays, the average price comes way down.

At least 4 counties, the main areas for new oil wells in the Bakken, were having a breakeven cost at or below $37.

Dunn $29
McKenzie $30
Williams $36
Stark $37

https://www.dmr.nd.gov/oilgas/presentations/FullHouseAppropriations010815.pdf
Page 7

That was to drill a new well. For wells already in operations producing oil, the average is $15 a barrel before they operating cost would match selling price.


10 posted on 04/30/2015 1:17:29 PM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 9 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson