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.

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.

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Bernie's juggernaut

Sen. Bernie Sanders speaks in San Antonio last night with his wife, Jane. Photo: Eric Gay/AP

Sen. Bernie Sanders won so big in the Nevada caucuses that Democrats are hard-pressed to sketch a way he's not their nominee.

Driving the news: With 60% of precincts counted (slow, but better than Iowa!), Sanders is running away with 46% of delegates — crushing Joe Biden's 20%, Pete Buttigieg's 15%, Sen. Elizabeth Warren's 10% and Sen. Amy Klobuchar's 5%.

Go deeperArrowUpdated 1 hour ago - Politics & Policy

Buttigieg campaign claims Nevada caucuses were "plagued with errors"

Photo: Win McNamee/Getty Images

Pete Buttigieg's campaign wrote a letter on Sunday asking the Nevada State Democratic Party to release early vote and in-person vote totals by precinct and address certain caucus errors identified by campaigns, The Nevada Independent reports.

The big picture: The campaign alleges that the process of integrating early votes on caucus day was “plagued with errors and inconsistencies,” and says it received more than 200 incident reports from precincts around the state.

Go deeperArrowUpdated 1 hour ago - Politics & Policy

Coronavirus threat grows, threatening some drug supplies

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

As the novel coronavirus continues spreading globally and China grapples with a limited production capability, there's a growing risk to about 150 prescription drugs in the U.S., sources tell Axios.

The big picture: The coronavirus has spread to more countries, with both South Korea and Italy stepping up emergency measures amid rising case numbers on Sunday. COVID-19 has killed at least 2,467 people and infected almost 79,000 others, mostly in mainland China.

Go deeperArrowUpdated 2 hours ago - Health