3 ms·
Many basins or producers in the US don't "work" below $32 either.
by texasbigdata 6y ago
Many basins or producers in the US don't "work" below $32 either.
- Scoundreller 6y agoBut what happens when your opex and capex crater? How much cheaper is a drilling rig now vs. 12 months ago? How about an electrician?
- bladegash 6y agoI don’t know this for certain, but I have a feeling much of the price of extraction comes from accrued debt. Most of these companies - especially the smaller ones with less liquidity - probably financed significant portions of their operating expenses.
- Scoundreller 6y agoI agree. There’ll be a lot of bankruptcies and burned investors, but could be plenty of ongoing production after that all gets wiped out in a chapter 7/11.