| U.S. shale has nothing to fear from the current low oil price environment, which has seen crude prices fall 40 percent since June last year. Research by Bloomberg New Energy Finance shows that a reduction in the cost of drilling and completing wells has brought breakeven prices for the big tight oil plays several dollars below the current WTI price of around $60 a barrel.
The “Big Three” U.S. light tight oil plays — the Eagle Ford, Bakken and Permian — all break even several dollars below WTI, at $47, $53 and $52 a barrel, respectively, according to BNEF research. The collapse in oil prices has led to a corresponding downturn in the costs of drilling and completion services. This means that the same well that may have cost $8 million when oil was trading cost $6 million. This, in turn, means that breakeven prices have come down by as much as $20 a barrel...............................................Full Article: Source
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