Break Even

Oil markets are once again gripped by volatility as OPEC+ proceeds with its third production hike in as many months—adding 411,000 barrels per day in July—while prices linger near $65 per barrel.

Here’s an examination of the economics of U.S. shale.

It’s not as simple as Drill Baby Drill.

First-off, government doesn’t drill for oil and gas; energy companies do.

Secondly, government doesn’t set the price of a barrel of oil; world markets do.

And because business has to turn a profit it is important to focus on the price levels needed to keep existing wells running and justify new drilling.