A drop in global oil price levels or a significant widening of the differential between global oil prices and inland realizations are just two of the ways the North American tight-oil boom could go bust, according to a recent analysis from Wood Mackenzie. The research and consultancy group, which reported its findings Mar. 25 at the American Fuel & Petrochemical Manufacturers annual conference in Orlando, Fla., stated that 70% of US reserves would remain economic with global oil prices at $75/bbl. “There is not much US producers can do to influence global oil prices,” said Harold York, WoodMac principal downstream research analyst. “Supply and demand fundamentals and nonmarket dynamics around the globe keep the price environment well above the break-even economics levels of several US tight oil plays,” he said, adding that nearly all proved reserves of US light tight oil (LTO) are viable at today’s prices. WoodMac reported […]