According to a 2024 survey, oil producers operating in the Permian region needed WTI oil prices to amount to a minimum of 62 U.S. dollars per barrel in order to profitably drill a new well. This compared to a minimum breakeven price of 38 U.S. dollars per barrel for existing wells. The monthly average WTI oil price ranged between 77 and 81 U.S. dollars per barrel around the time of the survey.
Most productive oil basins
Operators in shale basins have the lowest average breakeven prices for new wells. However, when it comes to existing wells, operators in the Permian (Delaware) basin can afford even lower oil prices. The Permian basin, located in Texas and New Mexico, accounts for the greatest U.S. oil production output of any region. In 2023, production in the Permian reached nearly six million barrels per day - more than five times the amount extracted from the neighboring Eagle Ford rock formation.
Texas is leading oil producing state
With both regions located in Texas, it is not surprising that this is also the leading crude oil producing U.S. state. Nearly two billion barrels worth of crude oil were extracted in Texas per year, far more than any other state. Texas is home to a total of five major oil and gas formations.
Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2024
(in U.S. dollars per barrel)
Results of two separate survey questions: "In the top two areas in which your firm is active: What West Texas Intermediate (WTI) oil price does your firm need to cover operating expenses for existing wells?" - Existing wells, 91 respondents; "In the top two areas in which your firm is active: What WTI oil price does your firm need to profitably drill a new well?" - New wells, 87 respondents.
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Dallas Fed. (March 27, 2024). Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2024 (in U.S. dollars per barrel) [Graph]. In Statista. Retrieved November 21, 2024, from https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/
Dallas Fed. "Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2024 (in U.S. dollars per barrel)." Chart. March 27, 2024. Statista. Accessed November 21, 2024. https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/
Dallas Fed. (2024). Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2024 (in U.S. dollars per barrel). Statista. Statista Inc.. Accessed: November 21, 2024. https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/
Dallas Fed. "Average Wti Price Needed for U.S. Oil and Gas Producers to Stay Profitable by Well Status in Selected U.S. Oilfields as of 2024 (in U.S. Dollars per Barrel)." Statista, Statista Inc., 27 Mar 2024, https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/
Dallas Fed, Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2024 (in U.S. dollars per barrel) Statista, https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/ (last visited November 21, 2024)
Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2024 (in U.S. dollars per barrel) [Graph], Dallas Fed, March 27, 2024. [Online]. Available: https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/
