I think the low-cost operators coul drill and complete a well, prior to the slump in oil prices, for about $6 million in the Bakken. Prior to new completion techniques, costs were pretty much 50/50 between drilling and completing/fracking.
Let's say day rates for rigs decrease by 30%.
Let's say operators focus on drilling, delay fracking.
Or, let's say operators concentrate on re-fracking wells drilled back at the beginning of the boom.
Something to think about.
Rigzone Predictions: The Slump in Oil Prices
The articles on the slump in oil prices continue to come fast and furious. I will probably post/link many of them for archival purposes, though it's a bit tiring and repetitive.
Having said that, this is perhaps the best opinion piece I have seen to date on what the future holds with regard to the slump in oil prices. It was posted over at Rigzone a couple days ago. These articles are often archived and available by subscription only in a short period of time.
From that article, these are the main bullets. Go to the link for a more detailed look.
- upstream costs are the silver lining for operators
- refracks start to look better than new fracks
- Haynesville -- dry gas is back
- Eagle Ford remains the cream of the crop
- Permian M&A will heat up in 2H15
- US Gulf of Mexico activity will defy low oil prices
- operators ease off the gas in Canadian unconventionals ...
- ... and hit the brakes in the Canadian oil sands
- North American LNG loses some luster, but maintains momentum
- ethane is maxed out
- 2014 outages are a structure feature of the chemicals market, rathn than random variation
- Keystone XL remains in a holding pattern
- the MLP boom still has a bit of room to run
- US crude oil export policy -- evolution rather than revolution
- the benefits of Mexico's opening will accrue mainly to larger players
There is enough "stuff" in that article to keep me busy for months.