4 ms·
Break even prices for the Permian basin: https://bioage.typepad.com/.a/6a00d8341c4fbe53ef022ad3566378200c-popup https://bioage.typepad.com/.a/6a00d8341c4fbe53e
by Diederich 8y ago
Break even prices for the Permian basin:
https://bioage.typepad.com/.a/6a00d8341c4fbe53ef022ad3566378200c-popup https://bioage.typepad.com/.a/6a00d8341c4fbe53ef022ad3566378...
Some of them are in the low $20s.
On the other hand, Saudi Arabia needs oil to be >$80 in order to balance its budget: https://www.reuters.com/article/us-saudi-arabia-imf/saudi-arabia-needs-oil-at-85-87-a-barrel-to-balance-budget-imf-official-idUSKBN1I30H7 https://www.reuters.com/article/us-saudi-arabia-imf/saudi-ar...
- enraged_camel 8y agoThe main issue with shale oil is that many (most?) refineries in the US can’t refine it, so it has to be exported, basically. Whereas Saudi oil is “sweet” and pretty easy to refine.
- einarvollset 8y agoThat cannot possibly be true. Up until very recently US oil was barred from being exported.
- howlingfantods 8y agoThat's patently untrue. Saudi crude is primarily heavy or medium and sour (high in sulfur), the complete opposite of what you're saying.
- MR4D 8y agoYou are rather misinformed. For instance,the Exxon refinery in Baytown can refine darn near anything. The EIA has a page to track it and he different types of crude oil here: https://www.eia.gov/opendata/qb.php?category=1292755 https://www.eia.gov/opendata/qb.php?category=1292755
- souprock 8y agoI recall this being the other way: We can refine anything, but other places can not, so they pay more than we would for the nicer oil. We used to mainly get oil from Venezuela, which is extremely sour. Saudi Arabia affects our prices due to the world market, but we have never gotten much oil from there because of the long shipping distance.