Breakeven price for US shale gas on upward trend

摘要

Rising North American rig counts combined with falling natural gas prices are two contradictory and seemingly unsustainable trends. Their coexistense has focused attention on the breakeven economics of shale gas production, raising concerns about drilling decisions, say analysts. However, estimates of breakeven costs have proved to be moving targets, with new numbers coming out significantly higher than earlier assumptions. The estimates also fall within a wide range and can vary dramatically from analyst to analyst, depending on the methodology employed.