Shale companies have pushed breakeven oil prices below $40 per barrel—but so have major oil companies. Analysts commonly portray cost reduction as something unique to the tight oil companies. Data from annual reports filed with the U.S. SEC (Securities and Exchange Commission) suggests otherwise. (Click to enlarge) Along with tight oil companies, ExxonMobil, Royal Dutch Shell, ConocoPhillips and ChevronTexaco all had 2016 breakeven prices below $40 per barrel (Figure 1). Figure 1. Breakeven Prices for Majors and Tight Oil Companies Were All Less Than $40/Barrel in 2016. Source: Company 10-K and 20-F SEC filings and Labyrinth Consulting Services, Inc. SEC 10-K and 20-F filings include the standardized measure , a projection of discounted (10 percent) future net cash flows from production of proved oil and gas reserves. By dividing the standardized measure by the volume of proven reserves, breakeven prices can be calculated by subtracting the future cash flow […]