EOG Resources appears ready to weather the downturn thanks to improved completion techniques, sweet-spot well completions and cost cutting. According to their 2015 4th quarter presentation EOG’s break-even cost is around $30/bbl (Brent,) compared to $40-$65 for most US tight oil producers. EOG’s oil production break-even price is seen marked as the red asterisk on the following chart from 4Q 2015 EOG Resources Presentation
This figure appears to be below the break-even price required by Venezuela, Mexico, the Far East, Nigeria, North Sea, Gulf Of Mexico, Arctic, US conventional and Canada’s Tar Sands. EOG Resources reports a 10% ATROR at $40/bbl.
Countries are not companies however, and while comparison between break-even oil prices for the two can be difficult to make, it does appear that EOG Resources has remained competitive globally, even at today’s prices. For the full presentation see the link to the company’s website above.
click on chart to enlarge
Source EOG Resources 4Q 2015 Presentation.
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