|Register On Nairaland / LOGIN! / Trending / Recent / New|
Stats: 2,963,517 members, 7,190,625 topics. Date: Monday, 28 November 2022 at 12:44 PM
|What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by 9jii(m): 7:26pm On Nov 24, 2015|
Everyone in the energy industry is suffering as crude oil prices have slumped. But some oil producing countries are hurting more than others.
In the United Kingdom, it costs $52.50 to produce a barrel of oil -- which is trading right now around $42.
Oil production in Brazil costs nearly $49 per barrel. Production costs around $41 a barrel in Canada.
In the United States, production costs are $36 a barrel -- still below the trading price.
Those findings are from Rystad Energy's UCube database, which has information from roughly 65,000 oil and gas fields around the world.
Of course, it's hard to make money when the cost of producing oil is higher than the sales price.
It's no secret that many major energy companies have already announced a range of cut backs in high-cost countries.
See more: What is costs to produce oil
On the other side of the coin, Saudia Arabia and Kuwait can pump a barrel of oil for less than $10, on average. Iraq can produce oil for about $10.70 per barrel.
Rystad's head of analysis, Per Magnus Nysveen, provided CNNMoney with the oil production data and said it clearly illustrates how Gulf states are in a much stronger position due to their low costs.
Oil prices plunged in the back half of 2014 after trading above $100 a barrel. The drop came after OPEC -- a group of some of the biggest oil producing nations in the world -- decided to continue pumping the same amount of oil despite clear signs that there was too much supply in the market.
Analysts say the OPEC move, which was led by Saudi Arabia, was designed to squeeze high-cost producers out of the market so they could reclaim market share.
"Vigorous production" from OPEC countries has created a "massive cushion" of 3 billion barrels of oil around the world, the International Energy Agency said in a recent statement.
The resulting crash in oil prices is pinching even the strongest OPEC members.
The International Monetary Fund warned last month that most countries in the Middle East -- including Saudi Arabia, Oman and Bahrain --- will run out of cash within five years if oil prices don't rise above roughly $50 per barrel.
"Oil exporters will need to adjust their spending and revenue policies to ensure fiscal sustainability," the IMF wrote.
|Re: What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by ify2016: 7:28pm On Nov 24, 2015|
How that one take add value to ordinary widow on the street.
|Re: What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by 9jii(m): 7:33pm On Nov 24, 2015|
Seriously? lalasticlala come see
|Re: What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by mayorkyzo: 7:33pm On Nov 24, 2015|
So in essence nigeria has to look for a way to cut down operational costs to increase profit..
|Re: What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by shiinihost: 7:39pm On Nov 24, 2015|
ify, go back to the kitchen
|Re: What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by 9jii(m): 7:39pm On Nov 24, 2015|
Nigeria must diversify it Economy before Saudi Arabia and co. Finish the game.
|Re: What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by Pavore9: 7:42pm On Nov 24, 2015|
It means Nigeria is presently earning less than $15 as profit per barrel.
|Re: What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by captainflash(m): 7:49pm On Nov 24, 2015|
That's the point..
|Re: What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by honeywealth75(m): 8:04pm On Nov 24, 2015|
|Re: What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by Friday18: 8:08pm On Nov 24, 2015|
Diversification is the only solution.
|Re: What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by hopilo: 8:21pm On Nov 24, 2015|
Capital expenditure has been reduced by some oil companies that cost mosly comes from drilling activities. Drilling rigs no longer get jobs as drilling new wells makes no sense now. operational activities is on the producing wells and that is the real cost now.
|Re: What It Costs To Produce One Barrel Of Oil In Nigeria And Others. by GiantParrot(m): 8:35pm On Nov 24, 2015|
Good one @ OP. Now where are those guys who before the elections were telling us about how petrol should be under N40 per litre because according to their imaginations, crude oil production costs were about $4 per barrel. Nigerians really need to PLAN for difficult times ahead.
|Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health |
religion celebs tv-movies music-radio literature webmasters programming techmarket
Nairaland - Copyright © 2005 - 2022 Oluwaseun Osewa. All rights reserved. See How To Advertise. 55