calculate_breakeven_price
Determines the minimum oil price required for net present value to equal zero, using bisection method to find breakeven price given production, costs, and discount rate.
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 |