From: Oil & Gas Journal
HOUSTON, Feb. 5
Far less oil production has been shut in worldwide than generates negative cash flow because of the slump in crude oil prices, reports Wood Mackenzie.
Analysis of the firm’s database of more than 10,000 oil fields indicates that 3.4 million b/d of oil costs more to produce than the revenue it yields with the Brent crude price at $35/bbl. So far, less than 100,000 b/d has been shut in.
The database accounts for liquids production from oil wells of 79.7 million b/d.
According to WoodMac, 2 million b/d is cash-negative at a Brent price of $40/bbl, 5.3 million b/d at $30/bbl, and 7.7 million b/d at $25/bbl. MORE