Long Run Explor Ltd Ord WFREF

RE:Expect some short term volatility… not out of the woods yet.

[aaaaaargh]

sapiensunus wrote: We should be seeing the floor in oil prices over the next little while… Although we may overshoot on the downside, we are approaching raw costs in USD. This is all expected until we stabilize and start to ascend.

Now much does it cost to produce crude oil and natural gas?

"A measure of the total cost to produce crude oil and natural gas is the upstream costs. The upstream cost includes lifting and finding costs. Lifting costs are the costs to operate and maintain oil and gas wells and related equipment and facilities to bring oil and gas to the surface. Finding costs are the costs of exploring for and developing reserves of oil and gas and the costs to purchase properties or acquire leases that might contain oil and gas reserves.
EIA collects data related to these costs from the largest (major), U.S. oil and gas producers in its Financial Reporting System (FRS). The data are generally representative of the average cost for the FRS companies to find and produce their own particular mix of crude oil and natural gas in their production locations in the U.S. and in other countries and regions of the world. The table below is adapted from the most recent report of the Performance Profiles of Major Energy Producers, 2009.
Costs for Producing Crude Oil and Natural Gas, 2007–2009
2009 Dollars per Barrel of Oil Equivalent¹

	Lifting Costs	Finding Costs	Total Upstream Costs
United States – Average	$12.18	$21.58	$33.76
On-shore	$12.73	$18.65	$31.38
Off-shore	$10.09	$41.51	$51.60
All Other Countries – Average	$9.95	$15.13	$25.08
Canada	$12.69	$12.07	$24.76
Africa	$10.31	$35.01	$45.32
Middle East	$9.89	$6.99	$16.88
Central & South America	$6.21	$20.43	$26.64

¹5,618 cubic feet of natural gas equivalent to one barrel.
Source: Tables 10, 11 and 12, Performance Profiles of Major Energy Producers, 2009.
Last reviewed: January 15, 2014"

From: https://www.eia.gov/tools/faqs/faq.cfm?id=367&t=6

Forecasts Cut

“Goldman reduced its six and 12-month WTI predictions to $39 a barrel and $65, from $75 and $80, respectively, while its estimate for Brent for the period were cut to $43 and $70, from $85 and $90, according to the report.
“We forecast that the one-year-ahead WTI swap needs to remain below this $65 a barrel marginal cost, near $55 a barrel for the next year to sideline capital and keep investment low enough to create a physical re-balancing of the market,” the bank said.
Goldman estimates there’s sufficient capacity to store a surplus of 1 million barrels a day of crude for almost a year. It expects the spread between WTI and Brent to widen in the next quarter as discounted U.S. crude prices and “strong margins lead U.S. refineries to export the glut to the other side of the Atlantic.”
The Brent-WTI spread will average $5 a barrel in 2016, according to the bank. The gap was at $1.50 today.”

https://www.bloomberg.com/news/2015-01-12/goldman-sees-need-for-40-oil-as-forecast-for-opec-cut-abandoned.html

GWH

Very nice and interesting chart Sapien. The only thing that one might say is missing, is the fact the fracking did not take off until after this reporting period, and fracking is very expensive. It would be interesting to see a chart that was more current....