calculate_breakeven_price
Calculate the minimum oil price required for net present value (NPV) to reach zero, using monthly production, operating expenses, capital expenditure, discount rate, and royalty percentage.
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 |