Posted on 12/01/2014 7:01:18 AM PST by Citizen Zed
Remember way back in June, when oil was $115 a barrel? Now it's trading at around $67.90 a barrel for Brent crude and some analysts are predicting, given the right conditions, it could tumble to as low as $40 a barrel.
Weak demand, a strong U.S. dollar and booming U.S. oil production are the three main reasons behind the fall, according to the International Energy Agency (IEA), which warned of a "new chapter" for oil markets, which could even affect the social stability of some countries. Russia is already feeling some pain: the ruble tumbled about 4 percent on Monday, on course for its biggest daily drop since the 1998 financial crisis.
(Excerpt) Read more at nbcnews.com ...
It’s his favorite home..................
Lower than US costs, but higher than Saudi costs.
That is not production cost.
Those governments get significant revenue from the oil production. Those number are the required price of oil to balance their government spending. They are not related to the cost of production.
Kind of. It’s hard to do a apples-to-apples comparison due to the way oil is owned and produced in the two countries. If you strip out royalties, taxes, and fees and whatnot, it’s about the same cost, with Saudi being slightly lower.
But if you count all-in-cost in Saudi (including transport), it’s $98 to break even in Saudi. (See link above.)
How dare those countries sell their oil at market prices!!!!
OK, then remove the 1/4 royalty from US production and the 1/3 tax burden (severance and income) and re-compare.
What does the Script on top say?
Cool pic .
$40 a barrel?
Nice... so we can expect $1.50 a gallon gas then?
WHAT! You want the owners of the oil to give it away for free??? Why!!!
and the 1/3 tax burden (severance and income) and re-compare.
You are trying to compare government military, welfare and everything else spending to the price of producing oil.
This is not an apples to oranges comparisons. You are trying to compare apples to submarines. Not related.
Inventory of the world’s top ten most deterrent nuclear weapons ( Photos)
All your base are belong to us
The Saudi’s are trying to kill Iran and Russia’s military budgets like they killed the Soviet Union’s in the late 1980’s.
Since both are over extended in Ukraine and Syria respectively, it might even work.
The Saudi’s are trying to kill Iran and Russia’s military budgets like they killed the Soviet Union’s in the late 1980’s.
Since both are over extended in Ukraine and Syria respectively, it might even work.
“WHAT! You want the owners of the oil to give it away for free??? Why!!”
Of course not.
The oft-quoted “price of production” numbers for Saudi remove the equivalent of royalty and taxation from the cost of production.
Obviously, both need to be added back in to make the numbers comparable.
That is NOT the price of production. It is the price to balance their government spending. It is unrelated to the price of production.
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