Creating an accurate benchmark of break-even costs for oil and gas producers can be extremely challenging given variable data sets and calculation methodologies.“Producers rarely give much away – if they do, it can be extremely difficult to be confident that the data is comparable and can be used to create an accurate benchmark,” said Nikki Zenonos, director of Evaluate Energy in London.Evaluate Energy has published a new white paper that examines varying ways in which break-even costs can be calculated. It includes a recommended methodology to calculate break-even most effectively.The report covers:Why break-even costs of oil and gas production are so important.The key components of break-even and full cycle cost measures.How Evaluate Energy calculates each cost component.The pitfalls that come with break-even analysis and estimates.
