Quote:
Originally Posted by GGG
I don't think that is quite true. They will frack already drilled wells at $45-$50. It definitely slows the recovery. Though by the same token Canadian heavy oil producers will due debottleneck and sustaining projects at 45-50 as well.
|
That would be my suspicion as well. I don't have any detailed numbers on the economics of shale, but my gut tells me that $45-$50 is too low to start from scratch with a field and make a return. Otherwise we wouldn't have seen rig counts drop off like we did.