It comes down to my first question, what is their absolute break even point. I’ve heard $55, but is that true?
I don’t think one barrel yields much gasoline, but then again, I’d like to know the facts. Maybe I’ll just ask Siri.
Canadian oil sands oil (on wholesale market) was almost free a month or so ago, since there was no way to transport it out of Alberta.
Some wells produce very light liquids called condensates, which produce little gasoline.
So if a well produces oil too thick or too thin, not much goes to gasoline. Can be wildly useful in other ways though.
Figure that the “average” barrel of oil will yield about 10 gallons (varies widely), then you start to see the folly of Pemex’s battle to open up their fields.
It isn't just the oil or the gas, but the entire infrastructure needed to safely refine oil into usable form.
And in Mexico, who is the bigger thieves, the cartels or the government?