Breakeven Prices for Oil & Gas
Posted: Wed May 25, 2016 12:44 pm
Highest oil breakeven is in Williston Basin; for gas it’s the Fayetteville
Lowest oil breakeven is the Midland Basin; lowest for gas is the southwest Marcellus
A report from KLR Group on May 23 has pegged the breakeven costs for various oil and gas plays around the United States. The report looked at capital performance of E&P companies, and found that the highest breakeven for oil among the basins in the U.S. is NYMEX $67 per barrel for oil, while the highest breakeven for gas is NYMEX $3.70 per Mcfe.
This article goes a long way to explaining why I have been saying for over a year that crude oil below $50 and natural gas below $3.50 are "unsustainable". There are very few places in the world where upstream companies can justify drilling new wells with oil & gas prices that low.
Read: http://www.oilandgas360.com/median-brea ... dium=email
Lowest oil breakeven is the Midland Basin; lowest for gas is the southwest Marcellus
A report from KLR Group on May 23 has pegged the breakeven costs for various oil and gas plays around the United States. The report looked at capital performance of E&P companies, and found that the highest breakeven for oil among the basins in the U.S. is NYMEX $67 per barrel for oil, while the highest breakeven for gas is NYMEX $3.70 per Mcfe.
This article goes a long way to explaining why I have been saying for over a year that crude oil below $50 and natural gas below $3.50 are "unsustainable". There are very few places in the world where upstream companies can justify drilling new wells with oil & gas prices that low.
Read: http://www.oilandgas360.com/median-brea ... dium=email