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Red River Valley | $75.00 per barrel
Jack Ekstrom ( sp) of Whiting Petroleum was on the Joel Hietkamp show on KFGO this morning and was asked Point blank at what level drilling would stop, pumping would stop and wells would be shut in.
His answers were as follows If oil were to drop to $60 and stay there for more than a couple of months Exploration for oil would stop or be heavily curtailed.
At $45 - $50 drilling on know sources would be curtailed and most likely stop at below $40.00 per barrel
a well once it has started pumping will be kept pumping most likely until under $20.00 per barrel.
Now I do not know much about cost structure of the other shale sites but I do know that Mr. Ekstrom knows the Bakken.
How low do we go I'm not sure but the Kingdom of SA has made the statement that they will take oil to the level that shuts down the US shale Industry and I tend to believe them.
what I do know is that when they achieve this goal raising prices will not be very easy as they will understand that all that will do is restart the shale. | |
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effect of oil price decreases
