WJ,
am not even talking about supply or demand. Am talking about at what price do oil companies actually starting losing money on a barrel of oil? I would have never thought we were going to see 50 dollar a barrel oil again in my lifetime. unreal
what does this have to do with my question?
I just wanted to know what others thought how low oil could possibly go before they start losing money on producing oil. Hell i would have guessed that they couldnt go lower then 50 bucks a barrel in order to break even. It really is incredible to see oil this oil considering they have been saying for years now that we dont have much oil left on the planet, which i think is a total lie.
Chinese government to limit slowdown
An aggressive package of expansionary policies should limit the slowdown in Chinese growth. “We think China’s fiscal response will prove effective,” said T.J. Bond, Asia Pacific economist (ex-Japan) at Merrill Lynch. “By contrast, smaller, open economies in Asia are more vulnerable."
https://biz.yahoo.com/bw/081204/20081204005640.html?.v=1
I love how Merill Lynch reports that if the resession hits China oil will go to $25, but no one reports that they don't think it actually will. They might as well come out and say if the moon spins out of control and smashes in to the earth, oil will go to $0. Shows how open the market is to manipulation. ML takes a short oil position then drops this little nugget and chaching.
Your question is too vague. It's like you asking me how much a car costs. Are you talking about a new car, used car, SUV, minivan? Are you looking in Beverly Hills or Wyoming?etc.
I can tell you that oil was $10/barrel 10 years ago and $20-$30/barrel 4 years ago. We are not exactly in unprecedented waters here.
Some producers will be profitable at these levels, some will be profitable if oil goes to $30, others will be profitable even at $20. A company that leases a deepwater drilling rig for $500K per day will need higher oil prices than a company that has an oil field in Nigeria.
Spent the weekend with an old friend (Oil Field Trash)
wow thats interesting. They must pay crap for wages. I would thought in the 40's was break even.
wow thats interesting. They must pay crap for wages. I would thought in the 40's was break even.
Actually, they pay very well - and in fact most engineering positions are ex-pats. Wages isn't the biggest input into your cost but ease in drilling and extracting the oil is the biggest cost.
I saw somewhere and this was a couple of years ago, for Saudi Arabia it was about $17/bll to break even. Russia it is higher around 22-25 and the US is about 28.
However, becuase of how OPEC countries use the oil most need oil at $65 to pay for their vast benefits that spend to keep the people quiet
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