4 ms·
Important to note, Saudi Arabia has basically the lowest cost of extraction in the world. While other places need to perform complex engineering and invest hug
by tuna-piano 10y ago
Important to note, Saudi Arabia has basically the lowest cost of extraction in the world. While other places need to perform complex engineering and invest huge amounts of capital to extract oil, Saudi Arabia can basically just stick straws in the ground and watch it flow.
So if oil prices decline, Saudi Arabia will be one of the last profitable producers.
http://graphics.wsj.com/oil-barrel-breakdown/ http://graphics.wsj.com/oil-barrel-breakdown/
https://knoema.com/rqaebad/cost-of-producing-a-barrel-of-crude-oil-by-country https://knoema.com/rqaebad/cost-of-producing-a-barrel-of-cru...
- TwoFactor 10y agoThat WSJ article is very interesting, and I haven't seen production costs broken down clearly like that before. It's curious that Saudi Arabia is listed as having $0 per barrel in the Gross Taxes chart even though there's a 20% royalty and 85% income tax on Aramco. I'm curious if that information wasn't know when the article was created, or if those fees are significantly different than export taxes from an accounting perspective.