Gas prices

[jayjohnson600]

Accumulating oil in the portfolio. Been channeling it successfully for 5 years in both directions.

[TRAXX]

Think franking will start to become unprofitable in the 70 price range.

Is that where you shove hotdogs into the formation to prop open the shale rock?

[Strychnine]

Think franking will start to become unprofitable in the 70 price range.

This is not to say that every well is unconventional, but it gives an idea of break-even numbers (last fall).

Energy producers on average need oil prices around $96 a barrel to break even on wells drilled in Permian layers known as the Cline Shale and the Northern Mississippian Lime, according to Mike Kelly, an analyst at Global Hunter Securities LLC. That compares to average break-even prices of around $78 a barrel in the Eagle Ford Shale a few hundred miles east of the Permian, and $84 in the Bakken of North Dakota. Some areas of the Permian need a price of just $70-$74

At current energy prices, Irving, Texas-based Pioneer is earning cash profit margins of $60 to $70 a barrel on some of its Permian wells

But remember that the margin also has to pay for exploratory drilling and other things. Not all wells make money.


Other sources say this:

Value creation and profitability of the various plays is best expressed by comparing realized prices with breakeven prices (i.e., the minimum realized price that ensures positive net present value at 10% discount rate for new wells). The distribution of breakeven prices and production levels for every single well within a play is used to estimate the marginal cost of supply and robustness in activity levels when realized oil or gas prices are falling, such as we saw for the Bakken Clearbrook crude benchmark during the first half of 2012.

In the Bakken we observed that rig counts contracted when realized Bakken prices approached $60 per barrel during the first half of 2012. In the Bakken, Rystad estimates that about 90% of the new production comes from wells with breakeven oil price better than $60 per barrel.

Where is the balance price when it becomes unprofitable for American oil companies?

Not US, but some visibility:

UK North Sea work to slump on oil price fall

9 October 2014

Martin Quinlan, LONDON: A fall in the oil price to $80 a barrel would make a third of today's likely future developments in UK waters uneconomic, and would accelerate production shut-downs and decommissioning. So warned the oil producers' and suppliers' organisation, Oil & Gas UK (OGUK), in its Economic Report 2014, published in late September.

The UK's oil and gas producers have seen more than a three-fold increase in unit development costs - the cost per barrel of oil equivalent (boe) to be recovered - over the past 10 years, while unit operating costs have risen nearly four-fold over the same period. The only reason the industry has been able to withstand such increases is that oil prices have nearly tripled over the same period, OGUK says

http://www.petroleum-economist.com/Article/3388768/UK-North-Sea-work-to-slump-on-oil-price-fall.html

[A_A_G]

About time. It was $2.93 this past weekend in Houston and when I got back, it was still $3.15 here...

[03mustangdude]

Oils below 87 a barrel now but gasprices aren't sliding as fast

[01vnms4v]

They are switching to winter grade, uses less additives and winter is usually cheaper anyways

[03mustangdude]

Think franking will start to become unprofitable in the 70 price range.

[Sean88gt]

Where is the balance price when it becomes unprofitable for American oil companies?

[BP]

Elections are coming up!

It's amazing how that works.

[Juiced4v]

Ebola

[samuel642000]

Oil is down roughly 20%.

So that's why I can 't get hired on! lol

[bjtheman1]

Elections are coming up!

[slow99]

Oil is down roughly 20%.

[Trip McNeely]

Blame those capitalist oil companies!! Oh wait...

[Mike]

Winter grade fuel.