What is the break even price for natural gas?

February 17, 2020 According to the International Gas Union, nearly 70\% of proven gas reserves globally are now estimated to be in fields with average breakeven prices of less than $3.00/mmbtu.

What is the break even price for US shale oil?

Some of the most prolific areas in the U.S. shale patch, such as the core of the Permian and Eagle Ford basins, have even seen breakeven costs dropping to an average of $36.50 per barrel now, from $44 a barrel last year.

What is the cost of production for natural gas?

According to an IHS study, 800 trillion cubic feet of natural gas can be developed for around $3 per cubic foot, and America consumed 27.5 trillion cubic feet of natural gas in 2016.

How is shale oil produced?

Shale oil is an unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution. These processes convert the organic matter within the rock (kerogen) into synthetic oil and gas. The refined products can be used for the same purposes as those derived from crude oil.

Where is the Eagle Ford Shale?

The Eagle Ford Shale is a hydrocarbon-producing geological formation extending over 26 counties. It stretches from the Mexican border between Laredo and Eagle Pass up through counties east of Temple and Waco.

Who is the lowest cost oil producer?

Saudi Arabia
Saudi Arabia, Iran, and Iraq had the lowest production costs in 2016, while the United Kingdom, Brazil, Nigeria, Venezuela, and Canada had the highest. On 9 April, Saudi Arabia and Russia agreed to oil production cuts.

Who sets the price for natural gas?

Natural gas prices are mainly a function of market supply and demand. Because there are limited short-term alternatives to natural gas as a fuel for heating and electricity generation during periods of high demand, changes in supply or demand over a short period may result in large price changes.

How much natural gas does the US produce per day?

The United States now produces nearly all of the natural gas that it uses. U.S. dry natural gas production in 2020 was about 33.5 trillion cubic feet (Tcf), an average of about 91.5 billion cubic feet per day and the second-highest annual amount recorded.