Ann: Appendix 3B, page-11

>Shale in the Permian costs around US$40+ per barrel. Permian is the lowest cost shale production, the rest is much higher.

The problem is that Shale companies are pumping oil even if it is not profitable.
https://epic.uchicago.edu/news/a-smart-business-decision-drilling-even-when-its-unprofitable/

The US needs shale, even if it's economically non viable, to keep the lid on foreign oil prices. They never want to be held to ransom, as they were in the 1973 oil embargo. In their shoes, I would be giving super cheap loans to the sector to keep them ticking over.

Shale can be quickly ramped up if prices start to go north, and therefore keep a lid on prices. Assuming demand comes back.

I do like cara's comment on the fact that we are drilling when drilling prices are low. Hopefully everything will be on budget and good relationships will be forged.