Interesting.
A couple points concerning the chart.
That is numbers for matching government spending, not the cost to produce oil.
The US hasn’t had any real reluctance to spend more than its income. I have not seen much discussion related to members of OPEC doing the same.
Don’t underestimate the impact of currency exchange rates. Venezuela, Nigeria, Angola, Russia and other exporters might be getting fewer dollars for their oil, but because their currencies have been weakening so much against the dollar, in local terms their budgets aren’t as out of whack as all the “fiscal breakeven” numbers suggest.
http://www.forbes.com/sites/christopherhelman/2014/12/01/after-a-bloodbath-in-oil-what-next/3/
Considering the price is now below $60, this graph is something else.
This is economic war, which is always a prelude to military war. It was ever thus.
With between 750 billon and 800 billion in cash reserves the Saudis could weather the shortage for 5 years. Somebody will break and whack them before that happens.
Neat graph though, thanks.