American Shale Oil Production Costs

Many readers of this blog are aware of my views on the latest OPEC actions to reduce their production in order to up the price. And we see some modest increase in the last few weeks. I have said one must be careful of this OPEC action since many of the members always cheet and one must be aware of the new swing producer —American Shale.

I suspect some may be a little skeptical of my American bias.

The Institute of Energy Research in the US does some great analysis of the energy business and just recently published the latest information concerning American Shale Oil Prices. Specifically ,  they looked at how US  shale regions have been able to reduce their production costs in the light of lower oil prices through better drilling techniques like horizontal drilling .

Here are production costs in dollars for 2013 vs 2015 for the following US shale regions :

Bakken——North Dakota -65 to 30

Eagle Ford —-Texas -83 to 38

Niobrara——Colorado and Wyoming –70 to 36

Permian Delaware —Texas——–81 to 32

Permian Midland—-Texas—-95 to 38

So , one can see that the Americans having not been just lounging around waiting for OPEC to give up their fight, which , of course, they have now done. Rather , they have been sharpening their  pencils . And with a pro energy , pro fossil fuel President about to take office , the future looks bright .  It should also be noted that the ban on American oil exports has been lifted and American oil now finds itself not only in Canada, but as far a field as South Korea and Singapore according to the Institute.

 

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