Bernstein Research report (no url): “We estimate that about a third of U.S. shale oil production is uneconomic at $80/bbl WTI. We disagree with other estimates, including those cited by the IEA, which suggest the vast majority of shale oil production is robust at such prices.”
“….Investment Conclusion: We continue to believe that we are near the bottom of the oil price cycle1. Our most common client inquiry revolves around marginal cost and concerns that it is much lower than we would believe. Our previous (and more rigorous) marginal cost analysis predicts marginal costs around $100/bbl WTI, well above today’s spot price, indicating that as supply and demand balance, momentum will drive oil prices (and oil- linked equities) up from here. We currently have outperform ratings on EOG, APA, CIE, and TLM (oilier names) and RRC and SWN (gassier names).”



Future Today
