A survey by Federal Reserve Bank of Dallas shows that the cost of profitably drilling a shale oil well in the U.S. has fallen to $50 per barrel, “likely ensuring the growth of the onshore shale industry for years to come.” The Houston Chronicle reported, “Led by surging production and efficiency gains in west Texas’ booming Permian Basin, the average breakeven price of oil has fallen four percent or $2 per barrel during the past year… The rising production from increasing shale plays and cost reductions should also stop crude oil prices from rising too high, keeping crude oil prices trading in a narrow range for the foreseeable future.”
The survey shows breakeven points of $48 per barrel in Delaware and Midland basins in west Texas, $51 in Eagle Ford Shale in south Texas and $53 in Oklahoma. The breakeven point was about $75 a barrel in 2014.
