Saturday, September 10, 2016

Look How Operating Cost / Bbl Of US Shale Crude OIl Compares With That Of Saudi Arabia -- September 11, 2016

Note the operating cost/bbl for US tight oil.

For more on this graphic, see this post:

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.

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