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Saudi may make oil for less than $10, but they need prices to stay about $80 in order to sustain their massive internal subsidies. Shale breakeven on the other
by einarvollset 8y ago
Saudi may make oil for less than $10, but they need prices to stay about $80 in order to sustain their massive internal subsidies.
Shale breakeven on the other hand has only gotten lower and lower. It’s not long ago that people were predicting break even at $75, now it’s probably $35-$40.
- lenticular 8y agoThey won't be able to sustain their subsidies, but that does not mean they will stop producing.
- einarvollset 8y agoStop? Probably not, but my point is rather that oil production by Aramco is dependent on the political regime, which imply that there are additional costs that do not apply to US shale.