“What price does oil need to be to be profitable?”
It’s a range, even for similar wells, in the same area.
Each well is its own project, and costs vary according to many factors, like how deep, how far to transport, how much it produces (to dilute the fixed overhead costs) what kind of oil it has, what the financing costs are (interest on loans), etc..
Many American fracking operators can profit at $40-$50/bbl. Some fracking projects might need much higher prices to be profitable. On average, American frackers can produce cheaper than the Russian average.
Once a well has paid off the investment made to drill it and hook it up to transport, that same well can operate profitably at a lower price for its oil.
Very important “Once a well has paid off the investment made to drill it and hook it up to transport, that same well can operate profitably at a lower price for its oil.”
Good points, I do wonder about oil transport infrastructure. As cold temperatures begin to hit the whole region the price of oil becomes less important as the constant movement of oil in pipelines.
Serious damage can happen if the oil is allowed to stagnate and becomes more solid due to temperatures.
As I understand it, the disruption of oil transport in the 90s caused major problems and took years and western help to resolve.
As has been said, one cannot simply turn a well on and off at will, not can a pipeline full of oil be allowed to stop flowing without serious consequences
Kyiv Independent reports:
“The Danish government promised to transfer another batch of F-16 fighter jets to Ukraine later this year, the DR broadcaster reported on Sept. 15, citing Danish Defense Minister Troels Lund Poulsen.
“Denmark will deliver an additional contribution of F-16 aircraft in the second half of 2024,” Poulsen said in a comment to the Ritzau news agency after his visit to Kyiv.
Ukraine received its first U.S.-made fourth-generation jets in late July, one year after Denmark, the Netherlands, and other foreign partners launched the fighter jet coalition for Kyiv.
Danish Prime Minister Mette Frederiksen confirmed on Aug. 31 that these initial F-16s included aircraft from Denmark, while earlier reports suggested that the first batch was comprised of Dutch planes.
Copenhagen has pledged to deliver 19 aircraft to Ukraine in total…
…Ukraine was also promised 24 F-16s by the Netherlands, six by Norway, and 30 by Belgium. President Volodymyr Zelensky said his country needs at least 128 F-16s to successfully counter Russian air power.“