Wednesday, January 27, 2016

What it Costs to Produce Oil

United Kingdom
$52.50
Brazil
$48.80
Canada
$41.00
United States
$36.20
Norway
$36.10
Angola
$35.40
Colombia
$35.30
Nigeria
$31.60
China
$29.90
Mexico
$29.10
Kazakhstan
$27.80
Libya
$23.80
Venezuela
$23.50
Algeria
$20.40
Russia
$17.20
Iran
$12.60
UAE
$12.30
Iraq
$10.70
Saudi Arabia
$9.90
Kuwait
$8.50
Source: UCube by Rystad Energy; Interactive published Nov. 23, 2015
  • Stilgar Wilcox says:
    US cost per barrel at 36.20 is higher than today’s WTI price of 35.69 after a minus 1.66 due to the .25 interest rate rise that increased value of the USD against other currencies.
  • aliasees says:
    Nice information Thank you. The real cost is much higher once the dues are paid. In Libya for instance if the regional groups dont get their cut then they start misbehaving which stops oil flow. Everyone gets real upset if they dont get their slice of the pie. The general consensus is If I dont get my pie nobody does. At these prices the slices of pie are quite thin to nonexistent so I see MuaDib stopping the flow of spice much to the dismay of all pie eaters, myself included.
  • Governments depend on oil taxes to fund their governments. Taxes on oil are high everywhere. I am not sure what else has been left out–for example, dividend payments to stockholders and interest payments to bondholders, for example. Probably a lot of other things. The whole system has to operate. At this point, the US government (and state governments) have not suddenly removed all of the taxes on oil. Iraq needs the taxes on oil in order to fund its infrastructure. But the difference between direct costs and total costs means that even if prices stay very low, companies will continue to keep pumping.

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