Exploration & Production | Capital Markets | Capital Expenditure
$80/Bbl is No Obstacle for These Shale Plays
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With the last three months of 2014 ahead of us, numerous operators are beginning to assemble and hint at 2015 spending plans.
After experiencing a rather volatile year, crude oil prices are currently hovering around $90/barrel.
Gas prices are also continuing to experience overall decline, likely due to drilling efficiencies in plays such as the Marcellus.
Shale Experts is projecting that capital budgets for 2015 will be closely aligned with those we have seen this year.
The only real exception we are foreseeing is a decrease in Marcellus activity, due to the huge differentials in the play.
For example, Cabot Oil & Gas recently announced that it will increase its Eagle Ford rig count as well as its budget for the play. Its operations in the Marcellus, however will remain unchanged.
The image below details break-even statistics for some major US shale plays. Overall, these plays are looking at a break-even rate between $60-80/barrel. Excepted from this are the DJ Basin/Niobrara, Tonkawa, Woodbine and HZ Uinta plays, which see a break-even betweeen $82-101/barrel.
Break-Even by Play
(Source: ITG)
Stay on top of developing 2015 spending plans by accessing Shale Experts' Capital Budgets Database.
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