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New exploration is in the $35-40 break even range, not $60. A well with $60 break even is a poor investment right now.




Incentive != break even point.

$35-40 takes into account the risks and time value of the investment, potential price fluctuations, and the preference for (all else equal) lowest cost extraction.

I would not expect someone to dump in a shit ton of money, hope the well works out, and nothing else go wrong right at an expected cost at $60/barrel with amortized investments/operations included.




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