WTI down 4 bucks today alone -16% to $22.60. This is some unwind
Doesn’t suit the environmentalists, ROI on renewables v’s oil is looking bad
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.
I thought a shale well costs were sunk upfront, once they are pumping it’s cheap?
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
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
Recently breakevens were much less $40-45 .And hedged but only hedged somewhat because they never thought prices would go that low
Would they like 5 or 10 dollar oil?