3 ms·
New exploration is in the $35-40 break even range, not $60. A well with $60 break even is a poor investment right now.
by igftiuhugfduh 10mo ago
New exploration is in the $35-40 break even range, not $60. A well with $60 break even is a poor investment right now.
- mothballed 10mo agoIncentive != break even point. $35-40 takes into account the risks and time value of the investment, potential price fluctuations, and the preference for (all else equal) lowest cost extraction. I would not expect someone to dump in a shit ton of money, hope the well works out, and nothing else go wrong right at an expected cost at $60/barrel with amortized investments/operations included.