Goldman Sachs is predicting oil prices will average $75 a barrel during the first three months of 2015, which means wells in 19 shale formations, including the Tuscaloosa Marine Shale won’t be profitable.
The Tuscaloosa covers the middle of Louisiana and part of Mississippi. The formation is thought to hold as much as 9 billion barrels of oil.
However, Goldman Sachs tells Bloomberg News that the break-even price for wells in the Tuscaloosa is $75.92. Another developing formation, the Brown Dense in north Louisiana, will also be unprofitable at $75 a barrel.
Goodrich Petroleum, which has more than 300,000 acres leased in the Tuscaloosa, has said a $13 million well that produces 600,000 barrels of oil at $70 a barrel will have a return of 13 percent.