According to a 2022 survey, the average oil producer operating in the Eagle Ford oilfield in the U.S. needed WTI oil prices to amount to a minimum of 48 U.S. dollars per barrel in order to profitably drill a new well. This compared to a breakeven price of 23 U.S. dollars per barrel for existing wells. Operators in the Eagle Ford basin have the lowest average breakeven prices when compared to other oil basins. The monthly average WTI oil price fell to a low of 16.55 U.S. dollars per barrel as a result of the coronavirus pandemic-induced oil crisis in April 2020. However, for most of 2021, prices have traded above 60 U.S. dollars again.
E&P bankruptcy filings
The 2020 oil crisis resulted in over 40 North American companies within the upstream sector filing for bankruptcy. The oil industry has been particularly hard hit by the pandemic, as enforced mobility restrictions led to a drastic decline in transportation fuel demand worldwide, putting a strain on company liquidity. Some 18 North American exploration and production companies were forced to declare bankruptcy in the second quarter of 2020.
Most productive oil basins
The Permian basin, located in Texas and New Mexico, accounts for the greatest U.S. oil production output of any region. Production in the Permian usually reaches as excess of four million barrels per day, which is nearly four times the amount extracted from the neighboring Eagle Ford rock formation.
Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2022*
(in U.S. dollars per barrel)
* Results of two separate survey questions: "In the top two areas in which your firm is active: What West Texas Intermediate (WTI) oil price does your firm need to cover operating expenses for existing wells?" - Existing wells, 84 respondents; "In the top two areas in which your firm is active: What WTI oil price does your firm need to profitably drill a new well?" - New wells, 83 respondents.
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Dallas Fed. (March 23, 2022). Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2022* (in U.S. dollars per barrel) [Graph]. In Statista. Retrieved May 25, 2022, from https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/
Dallas Fed. "Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2022* (in U.S. dollars per barrel)." Chart. March 23, 2022. Statista. Accessed May 25, 2022. https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/
Dallas Fed. (2022). Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2022* (in U.S. dollars per barrel). Statista. Statista Inc.. Accessed: May 25, 2022. https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/
Dallas Fed. "Average Wti Price Needed for U.S. Oil and Gas Producers to Stay Profitable by Well Status in Selected U.S. Oilfields as of 2022* (in U.S. Dollars per Barrel)." Statista, Statista Inc., 23 Mar 2022, https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/
Dallas Fed, Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2022* (in U.S. dollars per barrel) Statista, https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/ (last visited May 25, 2022)
