• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours How Far Have We Really Gotten With Alternative Energy
  • 8 days They pay YOU to TAKE Natural Gas
  • 5 days What fool thought this was a good idea...
  • 8 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 3 days A question...
  • 14 days The United States produced more crude oil than any nation, at any time.
Editorial Dept

Editorial Dept

More Info

Will Shale Keep Booming At Low Oil Prices?

Bakken

Friday June 23, 2016

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. U.S. shale breakevens could be tested

(Click to enlarge)

- Oil prices plunged this week to their lowest levels since the third quarter of 2016.
- Oil prices are deep into bear market territory, approaching $40 per barrel. That will put the shale industry to the test.
- Many shale companies have dramatically reduced their breakeven prices, but some weaker, smaller companies operating in less-than-optimal areas could face pressure.
- A survey from the Dallas Fed says the average breakeven prices for the major shale basins range from the mid-$20s to the upper-$30s.
- However, that is just an average. Outside of the sweet spots, companies could fall below water.

2. Bakken activity up sharply

(Click to enlarge)

- The rebound in drilling over the past year has provided a jolt in economic activity to North Dakota, as seen by the Federal Reserve data above.
- The rig count in the Bakken has more than doubled from a year ago, and production has climbed over 1 million barrels per day.
- Some Bakken companies are even struggling to find enough workers as they step up drilling plans.
- However, this data does not capture the…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News