Photo: Spencer Platt/Getty Images

Consulting firm Wood Mackenzie has tried to put some numbers around how much global production no longer makes economic sense now.

What they found: Their analysis explores the economics of currently producing assets worldwide.

  • When Brent crude prices fall to $35-per-barrel, revenue from about 4 million barrels per day of output doesn't cover costs and governments' share.
  • When they drop to $25, it means about 10 million barrels per day, or about 10% of global production, falls below that threshold.
  • Prices are now in the $26 per barrel range.

Why it matters: "If prices do not rebound quickly, we’ll see a significant impact on currently producing fields and future supply," they note.

The big picture: Regardless of the exact price movements, there are lots of uncertainties ahead, which means...

  • "Large new projects will be put on hold and short-cycle discretionary investment will be dialed back to the bare minimum. Spend on projects under development and onstream will also be targeted."

Go deeper

Updated 50 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: The swing states where the pandemic is raging. Ex-FDA chief: Pence campaigning after COVID exposure puts others at risk — Mark Meadows: "We are not going to control the pandemic"
  2. Health: 13 states set single-day coronavirus case records last week — U.S. reports over 80,000 new cases for second consecutive day.
  3. Education: The dangerous instability of school re-openings.
  4. World: Australian city to exit one of world's longest lockdowns — In photos: Coronavirus restrictions grow across Europe
  5. Media: Fox News president and several hosts advised to quarantine after possible COVID-19 exposure
  6. Nonprofit: Rockefeller Foundation commits $1 billion for COVID-19 recovery
Dion Rabouin, author of Markets
2 hours ago - Economy & Business

Bond investors see brighter days

Illustration: Sarah Grillo/Axios

U.S. government bonds could breakout further after yields on the benchmark 10-year Treasury note ticked up to their highest since early June last week.

But, but, but: Strategists say this move is about an improving outlook for economic growth rather than just inflation.

Erica Pandey, author of @Work
4 hours ago - Economy & Business

The dangerous instability of school re-openings

Illustration: Eniola Odetunde/Axios

Schools across the country have flip-flopped between in-person and remote learning — and that instability is taking a toll on students' ability to learn and their mental health.

The big picture: While companies were able to set long timelines for their return, schools — under immense political and social strain — had to rush to figure out how to reopen. The cobbled-together approach has hurt students, parents and teachers alike.