OEF Rapid Review
A new report from the World Bank indicates that oil prices will rise in 2018, and U.S. shale breakeven costs will stabilize in the $40 a barrel range for most major shale plays. Most U.S. shale producers can generate acceptable revenue returns at $40 a barrel oil, and some at $20. Several advancements in the drilling and completion process are responsible, including longer laterals, shorter drilling and completion times, greater proppant intensity and multi-well pad development strategies. Hedging practices have also helped producers. However, many producers are starting to experience service cost inflation and difficult staffing environments.
LINK TO THE SOURCE ARTICLE:
World Bank: Oil prices to average $56 in 2018
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