Wednesday, December 10, 2014

Crude at $70 Puts at Least 1.5M B/D of Projects at Risk

The Canadian oil sands have a break-even price of $80 a barrel, US shale plays and other areas of tight oil ($76). Brazil’s deepwater fields ($75) and Mexican projects (around $70) are also vulnerable, reports FT.

With an oil price at around the $70 mark, at least 1.5m b/d of projects scheduled for 2016 are at risk, Energy Aspects estimates.

Note: Prices are now below even the $790 level. Light, sweet crude for delivery in January today  declined $2.62, or around 4%, at $61.23 a barrel on the New York Mercantile Exchange.

January Brent  slid $2.40, or 3.6%, to $64.47 a barrel on London’s ICE Futures.


  1. Is it possible then to have lower crude oil prices but higher gas prices at the pump?

  2. I'll bet the neo-cons are sobbing because their dream of "energy independence" is in trouble. They don't care, of course, that lower oil prices are great for the consumer.

  3. Interesting to compare to the chart in this earlier EPJ post, about countries' balanced budget break-even prices:

    Mexico has a balanced budget at $85 - production itself stops being profitable at $70. Relatively little dependence.

    Russia on the other hand, has a balanced budget at $100, but will only stop production once it falls below $45. Much higher dependence!