North Dakota Optimistic | Russell T. Rudy Energy LLC
“Rigzone” reports that based on their recent analysis, the North Dakota Department of Mineral Resources and the House Appropriations Committee are confident that the recent collapse of oil prices will not spell doom for the state. They conclude that operators will continue to drill new wells with prices as low as $30 per barrel. To put this in perspective, Iran has stated that they can withstand price reductions to as low as $25 per barrel.
While the recent drop in prices has dramatically slowed production, new wells are still being drilled in the four counties with the lowest breakeven points; Mountrail, McKenzie, Dunn and Williams. However, in other parts of the state, an oil price of $75 per barrel is required for new drilling to be economically justified.
Existing wells can continue to produce with prices as low as $15 per barrel. Consequently, if prices get as low as $25 in the third quarter, the state still would anticipate production at 1 million barrels per day.
To read the article in its entirety, please go to www.rigzone.com/news/article_pf.asp?a_id=137019 .
