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If the oil demand drops by 2/3, it will hurt most the expensive oil extraction methods. Meadle East companies will survive as their oil is cheapes. But fracking
by fpoling 8y ago
If the oil demand drops by 2/3, it will hurt most the expensive oil extraction methods. Meadle East companies will survive as their oil is cheapes. But fracking, tar sands and perhaps sea oil platforms will stop.
- beerlord 8y agoInteresting to note that whilst Saudi Arabia can technically extract oil for $9/barrel, they have a gigantic society to maintain on top of all that oil revenue - requiring $70/barrel to break even.
- baking 8y agoThis seems irrelevant, or at best helping the point of the parent comment. If Saudi society has large fixed costs, then they only need to sell more of their large reserves driving down prices even more and increasing the pain of the high-cost producers.