Post by
stockeditor on Jun 16, 2015 2:16am
Interesting Reading!!!!!!!!!!!!
US oil production has not reduced in the face of falling oil prices. American oil ouput has actually increased by half a million bbl per day since October 2014. Shale oil producers are getting more oil out of fewer wells and that factor is keeping the industry alive. What happened? First off, the shale producers' tendency to spray money around ended. Accountants were called in to cut costs and trim unnecessary expenditure. The sector is maturing from one dominated by risk takers to one run by innovators. Rather than repeating the same old formula at every new site, oil producers examined new methods and rapidly evolved the technology in order to survive. Analysts now estimate that the breakeven point of new shale oil wells is $27.50 per barrel, not counting financing costs.