Break even cost for some Texas wells is at $46
In Texas and Oklahoma, oil companies can wring money out of newly drilled wells in major basins for less than $50 a barrel, a new Dallas Fed survey says.This price is actually below most OPEC countries costs when you factor in the overhead cost of socialism in those countries. It is another example of how capitalism promotes efficiency.
As producers cut down on drilling time and pump greater quantities of crude, break-even costs in active U.S. oil fields have dropped 6 percent over the past year, the Federal Reserve Bank of Dallas said on Wednesday.
“It’s no surprise that these regions continue to attract new rigs and capital week after week,” said Michael Plante, senior economist at the Dallas Fed. In the Permian Basin, break-even costs have dropped to an average $46 a barrel, the lowest of the major basins.