Cheapest Source Of Oil Supply
U.S. shale oil was the world’s second most expensive oil resource is now the cheapest source of oil supply.
Just behind the giant onshore oil fields in the Middle East, Rystad Energy said on Thursday.
Rystad estimates its cost of supply curve update that the average Brent Crude breakeven price now is US$46 a barrel.
4$ above the average $42 per barrel breakeven price for the fields in Saudi Arabia and other Middle Eastern countries.
In 2015
Shale ranked as the second most expensive resource in Rystad Energy’s, with an average breakeven price at $68 per barrel.
In 2019
Onshore Middle East leads the cheapest source of supply, followed by North American shale, offshore shelf with average breakeven price of $49 a barrel, deepwater with a $58 breakeven price, and Russia onshore with $59 a barrel breakeven.
The most expensive source of oil supply is the oil sands, where the breakeven oil price is $83 a barrel.
According to the Q1 Dallas Fed Energy Survey, with executives from 82 E&P firms chiming in, average breakeven prices to profitably drill a new well in the U.S. range from $48 to $54 per barrel, depending on the region. Drillers need $50 a barrel on average to profitably drill a new well, down from $52 per barrel when the same question was asked last year. Average breakeven prices in Midland in the Permian were $48, the lowest-cost in the U.S., and the lowest-cost region in the past three years.
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Source: oilprice.com
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