'Peak Oil' far, far away


#2988

WTI down 4 bucks today alone -16% to $22.60. This is some unwind


#2989

Doesn’t suit the environmentalists, ROI on renewables v’s oil is looking bad


#2990

With prices this low, they’ll leave it in the ground!
There can’t be too many fields that can turn a profit at $25 a barrel.


#2991

I thought a shale well costs were sunk upfront, once they are pumping it’s cheap?


#2992

No, AFAIK. It’s horizontal pipes that do the fracturing. You’re not tapping into a big tank like structure, you’re essentially wringing out the oil and gas


#2993

The have to pay there loans which the ran up on the assumption of 70 dollar oil. Most will be bust in a short time


#2994

Recently breakevens were much less $40-45 .And hedged but only hedged somewhat because they never thought prices would go that low


#2995

Would they like 5 or 10 dollar oil?

https://www.bloomberg.com/news/articles/2020-03-19/how-low-can-oil-go-traders-see-crude-prices-heading-below-20?sref=ve5evhCK