Quote:
Originally Posted by BigNumbers
Oil should hold a $4 handle on it, unless incremental bad news comes out. There was little expectation in the market that there would be a deal reached.
Polak: Profitable at $20? Sure... Perhaps one boomer well on half-cycle economics (IP90....) in the heart of the Permian or the Stack. Full cycle, corporate returns to earn an IRR over 10-15% (ie: the level needed to incent capital to invest)? That's more like $45-50 in the heart of the permian, but for the average US conventional producer, that's $60-65.
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The best shale is not meaningfully cheaper then the best SagD. And certainly isn't cheaper then any replacement Barrels. And that includes the discounts applied to our oil.