[deMolay]

I find it interesting that the Saudi's are claiming that they now need $70/barrel to break even, is there any factual evidence to support that statement? http://search.japantimes.co.jp/cgi-bin/ ... 628a1.html

[Homesteader]

Maybe they are referring to their state budget. . .

[Schmuto]

If this is, in fact, the case, then what does that say?

$this->bbcode_second_pass_quote('', 'O')PEC estimates that $75 a barrel oil is needed for oil exploration and production to become profitable.

[rangerone314]

$this->bbcode_second_pass_quote('Schmuto', 'I')f this is, in fact, the case, then what does that say?

$this->bbcode_second_pass_quote('', 'O')PEC estimates that $75 a barrel oil is needed for oil exploration and production to become profitable.

[deMolay]

From the Article. $this->bbcode_second_pass_quote('', 'A')n equally important factor is that easily accessible oil is getting harder to find. OPEC estimates that $75 a barrel oil is needed for oil exploration and production to become profitable. Iran cites a $50 price as the minimum. Whether the much disputed point of "peak oil" has been reached or not, new demand is growing just as the cost of finding new oil becomes more expensive.

[hardtootell-2]

$this->bbcode_second_pass_quote('deMolay', 'I') find it interesting that the Saudi's are claiming that they now need $70/barrel to break even, is there any factual evidence to support that statement? http://search.japantimes.co.jp/cgi-bin/ ... 628a1.html

[Plantagenet]

Obama's new carbon tax will depress the level of US oil exploration and close US refineries, requiring the US to import more oil and putting more upward pressure on global oil prices.

[TheDude]

"Heavy sour crack whore."

$this->bbcode_second_pass_quote('', 'F')or OPEC members with ambitious economic or social programs, $60 a barrel oil is a break-even point for their constrained budgets.

[americandream]

I guess the issues are: Is OPEC ripping off the consumer or is its trading stock now in the $70 range? Any thoughts?

[Armageddon]

World production will never reach 90 mbpd. We are on the decline now. With the looming global economic collapse, PO will remain hidden by your average Schmoe.

[heroineworshipper]

Yeah. How on Earth can they break even at the rock bottom price of 70? It should be at least $200.

[Plantagenet]

$this->bbcode_second_pass_quote('heroineworshipper', 'Y')eah. How on Earth can they break even at the rock bottom price of 70? It should be at least $200.

[Armageddon]

$70-75.00 is perfect for them. They are raking in lots of dough and it buys just a little more time on the economy ( very little time ).

[cipi604]

The PARTY is on at this prices... people have money to spare!

[Daniel_Plainview]

$this->bbcode_second_pass_quote('deMolay', 'I') find it interesting that the Saudi's are claiming that they now need $70/barrel to break even, is there any factual evidence to support that statement? http://search.japantimes.co.jp/cgi-bin/ ... 628a1.html

[americandream]

So opinion is divided between them ripping us off and trading stock inventory (no more in the oil tank) issues. I'm none the wiser although common sense tells me that oil inventory is most probably behind the global economies difficulties at the moment.

[DantesPeak]

If I may offer an alternative explanation: I think the Saudis are saying here that they need $70 oil to run their economy. I don't think the marginal cost of newly reworked fields is yet anyway near $70, but maybe $30 to $40, but that's just a WAG.


Keep in mind domestic use of oil within Saudi is rising rapidly. It is sold at a great discount to the world's market value. Therefore what they lose internally they need to make up externally. Whether they can or will is another question.

[Sixstrings]

$this->bbcode_second_pass_quote('Schmuto', 'I')f this is, in fact, the case, then what does that say?

$this->bbcode_second_pass_quote('', 'O')PEC estimates that $75 a barrel oil is needed for oil exploration and production to become profitable.