Will $80 Oil Prices Kill US Shale Production?

[granger]

Thought I would post a link to an article by a co-worker on oil production/prices

http://bizmology.hoovers.com/2014/10/22 ... roduction/

 

[oldfat&bald]

I've heard $80 will slow it down some, that they need $85 to make it work. I don't see it staying at $80 for long. It will probably get back up after the first Tuesday in November.

 

[51eleven]

Never really thought I'd see less than $3 a gallon again. I'm down with his last sentence for sure. My wallet loves it.

 

[Old Bearkat]

$4 MCF gas prices killed shale drilling for gas. They need $6 or better to make it pay. The rigs merely went over to oil drilling. A lot of the new oil production in Texas has come from re-drilling/fracking in the old Permian Basin fields. The costs there are much cheaper, down to a break even of $60/bbl or so. Look for those activities to continue, although it will be at a slower pace.