Saudi wells break even at about $10 per barrel.
USA wells, specifically new wells, break even at $60 or higher.
Economically, it would make more sense for the USA to bomb and completely destroy the Mideast oil fields.
Then, we could sell our oil for $500 per barrel to foreigners and easily subsidize American citizens.
Of course, American oil reserves would run out after a few weeks, but Obama could solve that problem with an Executive Order.
Don’t propagate such nonsense. Saudi Arabia doesn’t tax its people like we do. They fund their government with oil sales.
Right now, the Saudi national budget needs $89/barrel Brent oil prices to break even. Sure, Saudi Aramco has $10/barrel in extraction/production costs...but that just pays for Saudi Aramco, not the Saudi national budget.
Moreover, the plunge in oil prices has come from 0bama and Europe relaxing the embargo against Iranian oil exports...they think that they can score a nuke deal...the Persians know to game them as long as they can.
Today, global oil production is on track to be 1.5 million barrels PER DAY greater than global oil demand.
What do you THINK oil prices are going to do?! Pretty soon the global oil surplus will be so large that there won’t be any places left to store the oil above ground.
“Saudi wells break even at about $10 per barrel.”
But the Saudi government budget breaks even at about $70 per barrel and that is what matters.