Note the operating cost/bbl for US tight oil.
By the way, in the graph above, we are not provided the denominator for
calculating the CAPEX costs for a bbl of oil. Over time, those CAPEX
costs will come down immensely at the same time production capacity will
be seen to increase.
One last point made by the reader who sent me the article: when one
considers the shipping costs (Saudi oil to the US gulf coast) vs the
pipeline costs (Permian crude oil to Houston), $5 Saudi oil might be at a
competitive disadvantage to $8 Permian oil. Perhaps not a disadvantage,
but certainly helps level the playing field.