Another perspective to ‘Age of cheap oil’

Another perspective to ‘Age of cheap oil’

The Age Of Cheap Oil Is Over

‘Saudi Arabia requires $93/bbl Brent to balance their budget. At today’s oil price, the Kingdom is going to watch their savings account drop by an estimated $50 Billion this year. We all know Saudi Arabia can afford it, however all but four OPEC members (Kuwait, Qatar, Saudi Arabia and UAE) will see their entire Sovereign Wealth Fund wiped out this year if oil prices stay this low. Algeria, Nigeria and Libya are already broke and Iran & Venezuela are getting close.’

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“The problem is that there are very few places left on earth where it is economically feasible at today’s oil price to find and develop new supply. Even in the really good parts of the Eagle Ford Shale you need $52/bbl just to breakeven. There are not many publicly traded oil companies that I know of which are in this business just to breakeven. If all but a few OPEC nations are broke, who is going to drill the wells we need to supply future demand?”
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By Dan Steffens of Oilprice.com

Oil and Gas Press

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