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OPEC's 2014 price war was a boon to US shale drillers

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.

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