Oil trading in the $70's

[mustangguy289]

At what price does it become unprofitable to get the oil out of the ground?

[Broncojohnny]

Depends on where it is at. Here in the states I believe it is around $60, not sure though, I am no expert by any means.

[90lxstangman]

When I was still working in the GOM in 2008-2009 the companies started stacking rigs and furloughing employees when it started declining into the 70's and even more as it continued to drop. Keep in mind majority of the rigs in the US are drilling natural gas.

[dblack1]

Here in south arkansas they need it to be in the $30 range to turn a profit. Some of the new deeper drilling requires more.

[Strychnine]

Like Al said it depends where it is.

The Permian Basin is cheap but places like western Canada's oil sands take more work to extract... and then you get into HPHT deepwater offshore stuff...

[Broncojohnny]

$70 oil is fantastic for the economy, I know the gas station where I buy all my gas is down about $.50 a gallon on Super unleaded since the start of summer.

[Strychnine]

Keep in mind majority of the rigs in the US are drilling natural gas.

Rig count last week in the US was 54% oil 46% gas (1985 total operating)

[90lxstangman]

I stand corrected. Should have looked at rig data before posting. I've only been paying attention to what's going on here in West Africa, since that's where I'm at.

[Strychnine]

$70 oil is fantastic for the economy, I know the gas station where I buy all my gas is down about $.50 a gallon on Super unleaded since the start of summer.

When it was in the $130+ range thats what everyone (drillers, operators, owners, etc) was telling me also.

[Strychnine]

I've only been paying attention to what's going on here in West Africa, since that's where I'm at.

F that. Don't get killed!

[90lxstangman]

Haha I've put in trips to Angola, Nigeria, DRC, Gabon, Equatorial Guinea. Right now I'm offshore Ghana. We just finished unlatching and getting ready to move to Cote Iviore. I feel safer here than I was in Nigeria and Angola for sure.

[Trip McNeely]

$89-$92.00/bbl is good profit range for oil if you're a shareholder.
IF you're an operator it would probably have to be below 60 I would imagine.

[FATHERFORD]

Most of the offshore rigs $20-$25 they are turning a profit.

[90lxstangman]

The Bottom dollar for us to keep everyone happy is the mid 80's. I am on a ultra deepwater semi sub so costs are much higher to operate.

[Sgt Beavis]

Depends on where it is at. Here in the states I believe it is around $60, not sure though, I am no expert by any means.

Nah, not that much. It can be below $30 in a lot of places. Oil Sands are profitable at under $40 a barrel. Oil Shale was as expensive as $90 a barrel at one point but all those high prices motivated development. Royal Dutch Shell now says they can extract if for under $40 a barrel.