Here is what you are missing as far as US shell Companies go. I will educate you a little.
To drill one well in the US before production costs
6-8 Million Just to Drill (depending on depth, complications, labor) I have seen one well cost over 20 million. (This is assuming they even hit the shell) 4-8 week process depending on region.
1-2 million Post Drilling (Fracking, Closing in the well) 4-6 week process.
This is not including the money cost to lease the land for the well, Trucking to move the drilling rig to the well. A lot more variables go into it than just these.
For a majority of US Shell companies such as CHK, SD, EXCO, APC etc to break even from land drilling you need oil to be around 60-70 a barrel. To begin to see any kind of noticeable profits you need no less than $80.00 a barrel.
The problem is that OPEC does not care if they are losing money, which at this point they are. The price of oil is based on demand. When OPEC is flooding the market with cheap oil (as we are seeing now) the demand for US oil is very very low, and people who fill their pockets know that US companies can not profit when it is as such.
I hope this helped you gain some insight as to why all US shell companies are suffering regardless of the strength of the US Dollar besides what you have read in some article.
