aja8888
Moderator Emeritus
I know little about O&G but I assume the per bbl price is just one factor in whether it is economic to go after oil. If you have an idle pump jack with relatively low production capability that has been shut down, $70/bbl is probably a good price to turn it back on. If you're thinking about drilling, $70 might not be enough to take the chance. Other big factors that I've heard of: Ability to transfer oil (pipeline or truck or rail.) Quality of oil (tar sands to light-sweet.)
IOW It's complicated.
35+ years in oil & gas here. There are probably more idle pump jacks throughout the oil fields than running. When formations go dry, lots of wells sit unproductive. There are many reasons for letting existing well bores sit inactive, more so that I can discuss here. Don't be surprised if you see a not operating pump jack.