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To: Paleo Conservative

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.)


27 posted on 12/01/2014 7:29:35 AM PST by Jewbacca (The residents of Iroquois territory may not determine whether Jews may live in Jerusalem)
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To: Jewbacca

More or less correct. That includes their entire budget, which adds some amount.

The numbers do not include what would be called a royalty in the USA or taxation, which is about 58% of the cost of a barrel of oil in the USA.

So, take a $45 bbl* in Saudi and multiply by 1.58 and you get $71.10 oil, which leaves no room for profit from the actual oil company producing the oil.

Obviously, no one will drill new at $71.10.

* This is the real cost of mechanically producing and transporting the oil in Saudi, bullshit they publish notwithstanding.


41 posted on 12/01/2014 7:53:47 AM PST by TheThirdRuffian (RINOS like Romney, McCain, Christie are sure losers. No more!)
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