RE:US Shale Oil Producing but not making any money.US Media B.SThats exactly what OPEC thought when they tried to kill US shale production in 2014 by flooding the market with cheap middle east crude. Man were they ever wrong, completion costs came down and now shale has roared back to life with a vengance driven by cheap debt. Drove the economy of Saudia Arabia right to the edge. US is exporting oil now, competing directly with the middle east producers.
Breakeven's in the Eagleford are down to $40 / bbl. which is where oil is probably headed to in the short to mid term with shale bringing on 1.6 million bpd this year, and over a million barrels a year after that pretty much for ever. Thats why the biggest private equity funds in the US, and middle eastern soverign wealth funds, are investing so heavily in US shale.
To compete small international oil producers need to keep costs down, and rates up. If GTE continues to improve on the execution front, it will do well. Columbia is a great jurisdiction to be in where they can achieve just that.