But the cost of fracking means that fuel prices must remain high to keep it economical to do.
Holy Shmoly!
Break even on Saudi oil is under $10.
I did a little more research...
The break even on USA off shore oil is around $65, too.
I had no idea costs are that high.
Well I believe natural gas has dropped from above $10 down to less than $3 per MCF since fracking really got going. So gasoline is not dropping, apparently. NatGas is WAY down.
He is wrong about the decline rate, especially on Eagle Ford wells. Most are still producing at a shallow decline between 50 and 100 BOPD in the sweet spots after a couple years. And with wells IP’ing around 2000 BOPD, the payout is only a couple months which is the most important factor.
Ping.