US shale boom confirmed despite falling oil prices

November 7, 2014

Despite a drop in oil prices over the last month, major U.S. shale plays will continue to be profitable on condition that WTI price levels stay above 65 USD/bbl, concludes Rystad Energy through their latest research.

“A key parameter to assess sustainability of the shale oil revolution is breakeven pricing. We find profitable core areas in shale plays like Eagle Ford, Niobrabra and Bakken, with a WTI breakeven oil price of under 50 USD/bbl”, says Espen Erlingsen, Senior Analyst at Rystad Energy.

Eagle Ford (Oil & Condensate), Niobrara (Wattenberg) and Bakken (ND) contribute to about 50% of total North American shale liquid production, and make up a 60 BUSD in yearly investment.

Rystad Energy research estimates the average breakeven price for more than 1,500 different acreage positions. Key inputs are well costs and liquid content reported by companies and well performances reported by state authorities.