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WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by wordychap: 6:57am On Jun 18, 2016 |
Nigeria is now the third most expensive country to produce oil in the world with a production cost per barrel of crude oil put at $28.99. According to a Wall Street Journal’s (WJS) survey of 12 notable oil producers, Nigeria stands behind the United Kingdom (UK) and Brazil in the production cost analysis. Both countries produce a barrel of oil at $44.33 and $34.99 respectively. The survey which was obtained from the WSJ in Abuja said production in Nigeria was more expensive than it is in the United States despite US use of expensive technology which combines horizontal drilling and a technique known as hydraulic fracturing to mine its Shale oil. A further breakdown of the cost shows that oil producers in Nigeria pay $4.11 as taxes on a barrel of oil they produce, while $13.10; $8.81 and $2.97 go into capital spending, production costs, as well as administration or transportation cost. It said for the US shale, $6.42 goes into taxes, while $7.56; $5.85; and $3.52 are used as capital spending; production costs; and administration and transportation. Also, with a tax of zero dollar, the survey stated that Saudi Arabia spends the least amongst the 12 sampled countries in the world for the extraction and trade of crude oil. The WSJ survey said: “Saudi Arabian crude is some of the cheapest in the world to extract because of its location near the surface of the desert and the size of the fields.” It further said: “That makes transporting those barrels an outsized piece of its costs, on a percentage basis, compared with countries where production costs are 10 to 20 times as high.” According to the survey, with $3.50 in capital spending, $3 in production cost, and $2.49 in administration and transportation, producing a barrel of crude in Saudi Arabia costs just $8.98. The figures however indicate that for every barrel of crude pumped by Nigeria, she nets about $20 profit since oil prices bounced back to levels above $48 or above. Saudi Arabia on the other hand could make as much as $40 or more at the same price level. The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu had once said when oil prices were hovering at prices below $40 per barrel, that the country could still make some profits from its production. http://www.thisdaylive.com/index.php/2016/06/18/wsj-nigerias-cost-of-oil-production-now-worlds-3rd-most-expensive/ |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by arresa: 7:07am On Jun 18, 2016 |
Nigeria is Africa's largest oil producer, but frequent incidents of sabotage and oil theft have hindered the sector onshore.http://graphics.wsj.com/oil-barrel-breakdown/ When these Nigerian kabukabu websites copy and paste their rubbish and paid stories, they leave out the critical details conveniently... This is why I always go to the source and not the useless Nigerian press.. 20 Likes |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by mesoprogress(m): 7:08am On Jun 18, 2016 |
Over inflated contracts in oil companies and fraud is also adding to these costs. 15 Likes 2 Shares |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by Pavarottii(m): 7:10am On Jun 18, 2016 |
So with the high cost of production, we are making less profit per barrel sold. Which means less money from that sector. But now d question is. Why d cost of production is high since we not using heavy technologies like US etc. 1 Like |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by PAINGAIN: 7:14am On Jun 18, 2016 |
When will salaries in nigeria be the third highest in the world? 42 Likes 1 Share |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by arresa: 7:18am On Jun 18, 2016 |
Pavarottii: Nigeria is Africa's largest oil producer, but frequent incidents of sabotage and oil theft have hindered the sector onshore.http://graphics.wsj.com/oil-barrel-breakdown/ Theft and security.... 5 Likes |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by wordychap: 7:27am On Jun 18, 2016 |
So in essence Nigeria gets less than $10 per barrel since most of d oil now is offshore ( were Nigeria has less stake) due to d militancy. God help buhari's govt. 8 Likes 1 Share |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by khristals(m): 7:37am On Jun 18, 2016 |
with this government, its one valley to another... see the problems they've lined up for Nigerians 6 Likes |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by PassingShot(m): 7:43am On Jun 18, 2016 |
According to the survey, with $3.50 in capital spending, $3 in production cost, and $2.49 in administration and transportation, producing a barrel of crude in Saudi Arabia costs just $8.98.This explains why Saudi does not favour production output cut. She can afford to sell even at $15 per barrel and still make some profit. khristals:How does this relate to the contents of the news? Hatred for PMB (loved by most Nigerians anyway), has affected how some of you reason and react to news. In the process, you worsen your ability to reason critically instead of advancing it. 11 Likes |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by mrvitalis(m): 8:02am On Jun 18, 2016 |
Pavarottii:Bro the corruption in the oil sector is super big,... . It's a world wide thing 5 Likes |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by khristals(m): 8:04am On Jun 18, 2016 |
How does this relate to the contents of the news? I know how just to advance from our present predicaments... its simple really.. Buhari has to admit he knows nothing on how to pilot the affairs of this country and we'll give him some cattles to go rear in his village! 23 Likes 2 Shares |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by Nobody: 8:15am On Jun 18, 2016 |
khristals: 33 Likes
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Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by eleojo23: 8:16am On Jun 18, 2016 |
... ... |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by Sermwell(m): 8:17am On Jun 18, 2016 |
I'm not really fond of calling this administration names but I don't think this government has any clue as to getting this country out of the mess we have found ourselves! 5 Likes |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by GenWOJUOLA(m): 8:17am On Jun 18, 2016 |
May God help us 1 Like |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by musquareni(m): 8:18am On Jun 18, 2016 |
achievement... |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by Shortyy(f): 8:18am On Jun 18, 2016 |
You mean NDA's oyel? 2 Likes |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by onuwasunday: 8:20am On Jun 18, 2016 |
How does that contribute to the welfare of my life.NONsense |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by Nobody: 8:20am On Jun 18, 2016 |
As they said the other day, Buhari is Nigeria's problem. Fortunately, in Nigeria we don't cut off the head to cure the headache, we just continue popping aspirin till we come down with hepatotoxicity or renal damage or both. I have nothing else to say 13 Likes |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by DaBullIT(m): 8:20am On Jun 18, 2016 |
Production cost at $29 per barrel And some erdyots are complaining Buhari is not doing anything for them Some other erdyots are blowing pipelines Apparently as far as Nigeria is concerned , there's no profit on crude oil , $50 per barrel , $29 processing fees per barrel , cost of import and export nko ? cost of delivery to states all over the country Son of the soil sold crude oil for $120 per barrel and left empty treasury and some edyotic assvengers are expecting miracle abi ? Thank God for wall street journal , some people for use agitation rob us die 6 Likes |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by anethcharly(m): 8:21am On Jun 18, 2016 |
PAINGAIN: Wait....Continue PAINGAIN: Wait....Continue 1 Like |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by Abiri22: 8:23am On Jun 18, 2016 |
wordychap: 1 Like
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Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by truthspeaks: 8:23am On Jun 18, 2016 |
OK but I believe in nigeria's case, d figures r inflated. Contractors can inflate figures for Africa. Oya Mr bubuhari, over to u to do sumtin abt it if u have anythn to offer. 1 Like |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by cutetopsey(f): 8:23am On Jun 18, 2016 |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by Izonpikin: 8:23am On Jun 18, 2016 |
Pavarottii:corruption I guess..or maybe figures have been concocted... You know we always have to hail naija.. But I think majority of this high production cost should be coming from marginal field production..and maybe deep water production. 1 Like 1 Share |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by omowolewa: 8:24am On Jun 18, 2016 |
The cost of doing business in Nigeria is just too high! In the analysis, Production Cost and Capital cost per barrel are the highest. Making the total cost higher than the budget benchmark. Can only be reduced through reduction of foreign personnel and embracing local technology. Without the two, the cost will remain high. |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by VocalWalls: 8:25am On Jun 18, 2016 |
Okay..... |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by justicejay(m): 8:25am On Jun 18, 2016 |
Weep for my country. |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by DaBullIT(m): 8:27am On Jun 18, 2016 |
THis government is wall street journal or this government is charging Nigeria for cracking crude oil ? khristals: |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by Flyingngel(m): 8:28am On Jun 18, 2016 |
In Nigeria, we cannot discuss anything without mentioning crude oil. I weep for this nation. |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by TheSCRYPT: 8:28am On Jun 18, 2016 |
As opposed to the UAE's $8/Bbl - $15/Bbl range. This is what you get when money changes hands too many times before it reaches it's point of use. 1 Like |
Re: WSJ: Nigeria’s Cost Of Oil Production Now World’s 3rd Most Expensive by wirinet(m): 8:29am On Jun 18, 2016 |
My main question is; if the production cost of Nigeria' s crude is about $29, how was nigeria able to survive low oil prices of between $8 - $16 under the Babangida and Abacha administrations? 2 Likes |
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