From The Sidney Herald: Break-evens are lowest right now in Dunn County at $15 West Texas Intermediate, followed by McLean County at $16, McKenzie at $17 and Williams County at $24. Williams County’s break-even rose $1 and was the only county to post an increase.For newbies: operators and analysts have all kinds of ways of determining break-even points. How folks calculate these numbers can vary widely.
“Industry efforts have moved to lower and lower break-even prices, so when we get into the third quarter of this year, we can break even on wells under $30 a barrel, meaning all counties in North Dakota are better than break-even for drilling,” Helms said. “Industry is looking at adding a dozen rigs.”From an October 28, 2016: Whiting says it can make money on $25-oil.
I would think the following would add huge expenses for operators:
- up-front one-time lease money
- building the pads
- building the roads out to the pads
- putting in water/waste-water infrastructure
- wasted time putting up/taking down rigs; moving from site to site
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.