This is a question I have, and haven’t found a reliable answer to. After a well is drilled and fracked...what is the breakover to continue pumping. It has to be less than the $65 +/- number being thrown around for total production cost.
Isn’t that the critical number...which (combined with the average number of years a well is productive) dictates how low the Saudis have to go?
I can’t find link but it’s in a recent article in Forbes. Break even price for Bakken oil is $42.00
A reliable answer - seems to be difficult to find. I have heard anywhere from $40 to $67. None of this is sourced, so I sure can’t say, with authority, but I’d like to see some credible dollar amount, to advance the discussion.
J Random Freeper correctly pointed out, on another thread, that the oil doesn’t go away, when the price drops, or if a company goes bankrupt. When the price rises, a new outfit will resume drilling, when the bust part of the cycle turns into a boom.
No doubt OPEC is messing with U.S. production, hope it blows up in their faces.
Thanks.
“What is the breakover to continue pumping. “
Opex is south of $20 per bbl