calculate_breakeven_price
Calculate the minimum oil price needed for a project to break even by analyzing production, costs, and financial parameters to determine when net present value equals zero.
Instructions
Calculate breakeven oil price -- minimum price for NPV = 0.
Uses bisection to find the oil price at which discounted net cash flow equals zero.
Args: monthly_production_bbl: Monthly oil production (bbl) per period. monthly_opex: Monthly operating expense ($). capex: Total capital expenditure ($). discount_rate: Annual discount rate. Default 0.10. royalty_pct: Royalty fraction (0-1). Default 0.125. months: Number of months to evaluate (default: length of production array).
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| monthly_production_bbl | Yes | ||
| monthly_opex | Yes | ||
| capex | Yes | ||
| discount_rate | No | ||
| royalty_pct | No | ||
| months | No |
Output Schema
| Name | Required | Description | Default |
|---|---|---|---|
| result | Yes |