ADVERTISEMENT

Make or Breakeven: Is Unconventional Oil Production Getting More Efficient?

The breakeven oil price is a rough, unregulated indicator for the jagged rhythm of the unconventional oil business.

Interest in the price at which finding or producing oil becomes profitable spiked after the oil price crash in 2014 put so much production below the profitable zone.

One sign of the times was that the Federal Reserve Bank of Dallas began asking oil and gas companies in and around Texas how high the oil price needed to be for them to make money drilling a well, starting in 2016.

“From our end, what we wanted is to get a feel for when a particular company will flip the switch and start drilling a new well or cut back on drilling activity,” said Mike Plante, senior research economist for the Dallas bank.

...
This article is reserved for SPE members and JPT subscribers.
If you would like to continue reading,
please Sign In, JOIN SPE or Subscribe to JPT

Make or Breakeven: Is Unconventional Oil Production Getting More Efficient?

Stephen Rassenfoss, JPT Emerging Technology Editor

24 May 2019

Volume: 71 | Issue: 8

No editorial available

ADVERTISEMENT


STAY CONNECTED

Don't miss out on the latest technology delivered to your email weekly.  Sign up for the JPT newsletter.  If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.

 

ADVERTISEMENT

No editorial available

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT