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Tight oil market dynamics: Benchmarks, breakeven points,and inelasticities

Fig. 7. U.S. tight oil and shale gas drilled but uncompleted wells (EIA, 2017b) (dotted curve, right axis) and West Texas Intermediate crude oil price (EIA, 2017c) (solid curve, left axis) from January 2014 to April 2017.

Abstract When comparing oil and gas projects - their relative attractiveness, robustness, and contribution to markets - various dollar per barrel benchmarks are quoted in the literature and in public debates. Among these benchmarks are a variety of breakeven points (also called breakeven costs or breakeven prices), widely used to predict