Mar 29, 2018

Survey of oil drillers helps explain shale's surge

The Federal Reserve Bank of Dallas has a new survey of oil-and-gas companies in their region that helps explain why U.S. production — especially from shale formations in the Permian Basin — is slated to keep surging.

Expand chart
Data: Federal Reserve Bank of Dallas; Chart: Chris Canipe/Axios

Check out the chart above: It shows the range of answers from executives at 65 companies about the price point they need to profitably drill new wells in several regions. WTI is trading in the $64-per-barrel range on Thursday morning. Even with increased shareholder focus on generating returns from shale producers, the survey is more evidence that the boom has staying power.

Quoted: "As the breakeven price doesn't stay the same as acreage is drilled out and costs change, production growth longer-term will be dependent on changes to this breakeven price and the price of crude oil," Kunal Patel, a senior analyst at Dallas Fed, said in an email exchange.

  • "However, the breakeven for the region has been relatively stable ($51 in 2016, $48 in 2017, $50 in 2018), so there can be production growth for many years in the future assuming prices remain at current levels," he added.

Go deeper

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 10:30 a.m. ET: 5,618,829 — Total deaths: 351,146 — Total recoveries — 2,311,404Map.
  2. U.S.: Total confirmed cases as of 10:30 a.m. ET: 1,681,793 — Total deaths: 98,933 — Total recoveries: 384,902 — Total tested: 14,907,041Map.
  3. Public health: Fauci says data is “really quite evident” against hydroxychloroquine for coronavirus — Nearly half of Americans say someone in their household has delayed medical care.
  4. Tech: Zipline drones deliver masks to hospitals; vaccines could be next
  5. Business: The downsides of remote work could diminish recent gains — PPP failed to get money to industries and areas most in need.
  6. 🏒Sports: NHL unveils 24-team playoff plan to return from hiatus.
  7. What should I do? When you can be around others after contracting the coronavirus — Traveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Updated 49 mins ago - Politics & Policy

Fauci: Data is "really quite evident" against hydroxychloroquine for coronavirus

Anthony Fauci told CNN Wednesday that the scientific data "is really quite evident now about the lack of efficacy" of hydroxychloroquine as a coronavirus treatment.

Driving the news: The comments came in response to news that France on Wednesday banned the use of hydroxychloroquine to treat the virus, after a large retrospective study in The Lancet found an increased risk of heart problems and death among coronavirus patients who took the anti-malarial drug.

Trump has turned Big Tech's speech rules into a political football

Illustration: Lazaro Gamio/Axios

Twitter made headlines Tuesday after labeling two election-related tweets from President Trump as potentially misleading — the company’s first action against the president’s tweets, which often test its policies on misinformation and abuse.

The big picture: Twitter's unprecedented move, which swiftly drew Trump's fury, was just one of four controversies over the last 24 hours involving tech platforms grappling with free speech issues. And all of them, Axios' Sara Fischer and I report, reflect what a partisan issue the policing of social media content has become.