Quote from: TDoS on Jun 17, 2024, 09:18 PMQuote from: RE on Jun 16, 2024, 10:26 PMI'll update periodically. When it breaks into the $60s, we'll see how much the frackers still wanna sell.Fracking companies don't sell oil, they do recompletions on a cost per job basis. The companies contracting out the completion to service companies that do hydraulic fracturing own the oil, and sell it once produced. They will stop drilling and doing completions if the price gets low enough, depending on their breakeven costs for a desired rate of return. The service companies lay people off when business slows down, not just those doing the completions.
RE
The question is, at what price does the company who has the lease on the extraction rights stop extracting oil from that location because it costs more than the next link in the chain (the refiner I guess?) will pay for a barrel of it?
I thought your expertiese might finally prove helpful in predicting what price on the futures market would lead to a significant drop in total sales and exports from the FSoA producers? Oh well, just gotta wait and see.
RE