The recent oil market downturn and collapse in oil prices have helped US shale producers lower breakeven costs in the Midland portion of the Permian Basin from $77 in 2014 to about $50 in January 2017, according to BTU Analytics. Meanwhile, initial 12-month oil estimated ultimate recovery in the Permian, the Bakken Shale and the Powder River Basin had climbed by 41% from 2014 to 2016, while five-year estimated ultimate recovery was up by 22% over the same period, partly thanks to a better understanding of geology and more efficient and greater proppant use, according to the Oxford Institute for Energy Studies.
OPEC's 2014 price war was a boon to US shale drillers
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