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How much of any oil production is unprofitable at $30/bbl? I don't think it is clear that even Saudi oil makes money at that price. If the Saudis haven't been
by csours 7y ago
How much of any oil production is unprofitable at $30/bbl? I don't think it is clear that even Saudi oil makes money at that price.
If the Saudis haven't been trying to flood the market for the past 5 years, I don't know what they are trying to do.
- qeternity 7y agoThe big middle east producers have cash costs around $10/bbl. They are definitely making money. Whether or not they are making enough to cover the budget necessary to keep their populace complacent is another matter.
- toomuchtodo 7y agoSaudi Arabia needs $80/barrel to meet their budget, Russia around $42/barrel.
- jessaustin 7y agoThat's assuming output is fixed. If OPEC has failed, that's no longer the case. Since Saudi's unit costs are lower, they can dominate Russia in the long run. The global finance sector will certainly help them with that. Of course, it will be risky, but we are talking about the people who invested in Vision Fund.
- deleted 7y ago[deleted]
- chasd00 7y agoIIRC most ME budgets are in the red with oil below about $65/bbl. Some economies can last longer than others though. SA has been trying to kill the US fracking industry for a decade but so far no luck. Once fracking came online in a big way it put a price ceiling on oil below what most ME budgets could tolerate. Once that was in place OPEC was doomed and here we are.
- deepnotderp 7y agoIIRC Ghawar has a production cost of something ridiculously low like $7.50 per barrel