Since the onset of the decline in oil prices in the summer of 2014, the shale oil companies in the United States have taken up unprecedented steps to ramp up their efficiencies. Many went bankrupt, mostly small and vulnerable ones, those who survived are now in a better shape to compete in the global market with global producers. In addition to that, many small producers, who went bankrupt, were acquired by bigger oil companies with deeper coffers along with their assets. Below are the new break even details for major oil-producing regions in the United States,
- There are five major shale oil producing regions in the United States; Bakken, Eagle Ford, Niobrara, Permian Delaware, and Permian Midland.
- Back in 2013, the cost of production in Bakken, Eagle Ford, Niobrara, Permian Delaware, and Permian Midland were respectively $98, $85, $81, $73, and $66 per barrel. As of latest data, these numbers have declined to $39, $38, $34, $33, and $29 respectively.
The current oil price of $54 per barrel is sufficient enough for these regions to make profits.
