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Saudi makes up shit when they say their extraction costs are $3/barrel. A lot of clever accounting in that one. Actual extraction costs are roughly $10-$15/barr
by unexpected 6y ago
Saudi makes up shit when they say their extraction costs are $3/barrel. A lot of clever accounting in that one. Actual extraction costs are roughly $10-$15/barrel.
- boringg 6y agoStill far cheaper then almost everywhere else. $3 or $15
- chki 6y agoWhy do they or why would they make up extraction costs? (Genuinely interested)
- exhilaration 6y agoPosturing. They want to intimidate producers (and their investors) that have much higher extraction costs, like U.S. frackers and Canadian oil sands firms. "We can bring oil to $10/barrel and still be profitable," you can imagine them saying threateningly.
- deleted 6y ago[deleted]
- unexpected 6y agoexactly what exhilaration says below! I work in the oil and gas business. U.S. independent oil companies are survivors. If I have to pick between the U.S. shale producer or Saudi kingdrom, I'll pick the U.S. shale producer every time.
- xchaotic 6y agoTo have an upper hand in negotiation. Everyone knows Saudi can win the war of attrition with oil at low prices they just don’t know by how much.