Like this one?
Posted on 03/24/2015 5:56:02 PM PDT by Lorianne
I’m tossing you a softball. Now think carefully. The choices are:
A. Zero
B. Zero
C. Zero
D. Zero
I know Americans are math challenged and need a calculator to subtract 10 from 20, but I think even a CNBC bimbo or Princeton economic professor could get this one right.
Last year there was much banter from the Wall Street shysters and Bakkan shale oil experts about the true breakeven price for shale oil not being $80 (which is the truth) but actually being as low as $58 a barrel. They were spreading this lie in order to keep idiot investors buying the stocks and bonds of these fly by night shale oil companies.
Well, we are now six months further down the line and Bakkan shale oil this morning is selling for $37 per barrel. Where are the babbling baboons of bullshit with storylines of shale oil breakeven prices of $30? I guess even corrupt lying scum can’t work up the gumption to try and convince the ignorant masses of that doozy.
Think about this for a minute. What business in their right mind would start a project that is guaranteed to lose $43 per barrel produced? How long will these small shale oil companies with gobs of junk bond debt last at these prices? The answer is easy. Not long. The bankruptcies have begun. The rig counts are collapsing at the fastest pace in history. And the number of layoffs is increasing exponentially. It’s like watching a devastating car crash in slow motion. And it has only just begun.
On wells already producing.. ALL OF THEM...
If you have already spent the money, and walk away before you start pumping, you lose your entire investment. If you produce the well, you get a partial recovery of your investment.
Usually, the creditors don’t care, they’d rather shut down the well and lose everything, but it doesn’t make sense.
Sounds like a lefty, tree-hugging academic smirking in his hippy beard.
I’m not so sure on the burning platform and I don’t know if any shales make money at $37 a barrel. What I do know is what it cost E&P company to get a barrel out of the ground a year ago isn’t the same as it is today. The cost 6 months from now will be different from today. As of now costs are dropping as fast as oil has dropped!
Oil sands and shale oil is not really needed..
Until the democrats are unelected hung, tar and feathered and/or incarcerated..
Great post, Lorianne.
We make money but we are not the norm, we own the land, the minerals and do all our own drilling and production.
“Oil sands and shale oil is not really needed..
Until the democrats are unelected hung, tar and feathered and/or incarcerated..”
We gotta get the tar from somewhere...
The feathers I can work out for myself.
Good question ping.
Not long ago someone here posted a chart of production costs for oil fields from around the world.
A very good chart.
I wish I had saved it.
Like this one?
Like this one?
Exactly and that’s the benefit of a competitive market and the meritocracy that follows. You innovate or lose it all. You don’t get that in a bureaucracy or a dictatorship.
What I'm discovering however, is there seems to be a number of ways these analysts display the "costs".
I haven't found anything yet, that shows "Current" costs per barrel per oil field that is an apple to apple comparison.
Right. On the wells that have already been drilled, the money has already been spent. Although the investors are screwed by changes in oil prices, they might as well keep the oil flowing to recoup whatever they can.
Unless drilling and stimulation costs come down, none.
Project break-even Ardmore Woodford 43.01 Briscoe Rance vol oil (Eagle Ford) 49.80 Briscoe Rance condy (Eagle Ford) 52.77 San Juan Oil 53.64 Green River oil Vt 54.42 Wattenberg Hz oil 55.38 Permian Workcamp Hz 58.92 Permian Yeso Vt 61.61 Uteland Butte 63.50 Eagleville vol oil 64.56 Pernbina oily 65.41 Red Wash + Green River stacked Vt 65.66 Bakken Antelope 66.95 PRB Sussex/Shannon Hz 69.96 Permian Central Basin Platform Vt 70.48 Permian Del Basin Vt (Wolfbone) 70.78 Kaybob Duvernay oily 73.11 Permian Del Basin Hz (Bone Spring) 73.72 Bakken 74.17 Brown Dense 75.14 Permian Central Basin Platform Hz 75.14 Eagleville condy (Eagle Ford) 75.71 Permian Yeso Hz 75.91 Permian Cine Shale Hz 77.54 Uintah Wasatch 78.52 Miss Lime Core 78.55 Tuscaloosa Marine Shale 78.57 Wattenberg Hz Tier 2 84.98 Eaglebine 86.35 Permian Del Basin Hz (Avalon) 87.53 Marmaton (Shelf) 89.07 Permian Spraberry Vt 91.58 Permian Midland stacked Vt 97.32 Tonkawa 97.61 STACK 99.69 Penbina gassy 104.23 Cana Core Oil 144.49 SCOOP Non-Core Oil 184.39
On wells already drilled but not completed, all of them. and there are quite a few not completed yet. It’s the reason production is going up while rig count is going down.
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