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At 50$/BBl that's 2 million barrels, or one quarter of one day's worth of oil production for Saudi Arabia alone [0]. A new technology could do far more than jus
by thereisnospork 5y ago
At 50$/BBl that's 2 million barrels, or one quarter of one day's worth of oil production for Saudi Arabia alone [0]. A new technology could do far more than just 'disappearing' 100 million dollars worth of oil.
[0]https://www.spglobal.com/platts/en/market-insights/latest-news/oil/061021-saudi-arabia-reports-may-crude-oil-production-of-8544-mil-bd-above-target https://www.spglobal.com/platts/en/market-insights/latest-ne...
- thinkcontext 5y agoYou wouldn't pay the market price. Its costs money to extract oil, less than $10 per barrel in Saudi Arabia, in the $20s in the US. http://graphics.wsj.com/oil-barrel-breakdown/ http://graphics.wsj.com/oil-barrel-breakdown/
- jazzyjackson 5y agoOK but if I can sell 10 million barrels of oil for $750M why would I accept $100M to keep it in the ground?
- thinkcontext 5y agoYou would if your extraction costs were greater than $650M. But that's not what the comment I replied to was suggesting, they were suggesting offering $750M to keep it in the ground.