The cost price of oil production by countries. The cost price of oil in the world

Oil, equivalent to the dollar and gold, is one of the most powerful levers of regulating the economy. For prospective oil deposits, wars between states are constantly being waged, some government apparatuses are replaced by others. Energy in its structure belongs to the category of country-forming industries, since a breakthrough in this direction leads to dawn in most areas of the country's activities. The more a country is able to extract "black gold", the lower its production cost, the higher the chance for the state to prosper the economy and to win strong positions in the world market.

The cost price of extraction of a resource by countries

The cost price of oil production by countries is significantly different. For example, in Saudi Arabia, the cost of production of fuel does not exceed $ 10 per barrel. In Russia, this figure varies from $ 30 to $ 40. On the territory of America, this value in some regions reaches a mark of 60-70 dollars. With Canada, a separate situation. When producing oil on sand, it is necessary to spend about 120-150 dollars per barrel.

Does the situation "shale revolution" in the US under attack?

The situation with prices in the oil market and the cost price of oil production by countries, especially in the United States, in the opinion of a sufficiently large number of experts, puts the "shale revolution" under attack. If the price per barrel of oil does not rise closer to the $ 80 mark in the near future, it will simply be unprofitable to mine it. Nobody wants to work to the detriment of themselves. The low cost of black gold and the high cost of oil development pave the way to the world market for countries such as India and China. If the cost of the energy carrier drops to $ 30, a large player like Russia will be squeezed out of the market. The only way out of this situation is the beginning of the realization of oil by the countries in their own currency without being tied to the dollar rate.

The opposite side of the coin lies in the fact that the cost of oil production, produced to the public, is not factual in the countries. New deposits of the fossil are systematically developed, the technologies for its extraction are improved and cheaper. Many countries can withstand much higher pressure from the decline in world fuel prices.

Table of the cost of developing a barrel of oil by country

We will study the table of the cost price of a barrel of oil in each of the extracting states of the world.

From the table it is quite obvious that Saudi Arabia feels most confident in the international oil market. And it is she who is an ardent participant of OPEC, which categorically refuses to reduce oil production. The fall in prices, which terrifies many states, does not frighten her. Many analysts admit that the country simply wants to oust its main competitors from the world arena with this behavior.

The table shows the data that shows the cost of a barrel of oil excluding taxes in the state treasury and without the cost of excises, other minor expenses. Here you can focus on the fact that in Russia the cost of oil is formed by 55% of taxes. In America, this industry is practically tax-free, and therefore private companies have excellent prospects for development and excellent conditions for entering the international market. Support from the state plays a big role.

Details about the cost of oil in the US

The cost price of oil in the United States differs significantly, depending on the place of production and the specifics of the production technology used. So, back in 2012, large mining companies of America spent about $ 100 on the technology used to extract shale oil. In 2015, this indicator stopped at around $ 30. Representatives of private oil companies unofficially state that thanks to the systematic and long-term improvement of oil production technologies, they managed to reach a figure of $ 22 per barrel. Maintenance of active oil production facilities is half cheaper. Find out exactly what the cost of a barrel of oil in America is not possible. Everything will be evident with time, as the situation on the oil market develops.

What are the prospects for the US?

Estimating the cost of producing a barrel of oil in America, many experts do not cease to wonder about the specific price index in the world market of which the extraction of fuel will be unprofitable for the state. According to the statistics of one of the largest agencies, only 4% of the produced oil is currently out of profit. Large deposits in North Dakota are successfully functioning and continue to develop today. In addition, exploration of new territories and evaluation of potential deposits are constantly conducted. The most productive region of the United States is the Mackenzie district, where the cost of a barrel of oil does not rise above $ 28. The strategic reserve of fuel has a great influence on US policy. According to preliminary estimates, by the present moment it is already enough to ensure all the needs of the state for the next three years.

How much does oil production in Russia cost?

The cost price of oil in Russia is formed not only due to the specifics of its extraction, most of it is justified by the accompanying costs. The entire volume of Rosneft's revenue can be conditionally designated as 100%. At the same time, 55% of the revenues are paid to the state for payment of excises, MET and customs duties. 10% of the total income is spent on preliminary exploration of deposits, on the installation of oil production equipment, on the search for customers and the conclusion of contracts with them. We add 8.4% of the cost of a barrel for delivering it to consumers and 7.6% for depreciation of all Rosneft's resources (cars, buildings, equipment, drilling rigs, etc.) to a common expense item. The company, in addition to extracting energy, buys it from third-party enterprises, pays for its processing at least 8.6% of revenue. Net profit after the implementation of "black gold" is not more than 10%.

The cost price of oil in Russia, despite the generally accepted figure, ranging from $ 12 to 25, is much larger. If you take into account the cost of renting land or buying rights to use it, the cost of building the optimal infrastructure for fuel production, the figure is around $ 70 per barrel, which is an order of magnitude greater than that of America.

Why do the OPEC countries not reduce oil production and are content with low prices?

The cost price of oil in Saudi Arabia is the lowest in the world. It varies from 4 to 5 dollars. This allows the state to withstand significant drawdowns in prices on the world market. Refusal to reduce energy production led to an active drop in the value of "black gold". Such a decision is justified by the fact that not only Saudi Arabia, but all OPEC countries are completely dependent on the oil industry. The only state that does not depend on fuel production is Indonesia, whose profits are formed by the tourism industry, gas industry and sawmill. All other members of OPEC survive to a greater or lesser extent due to oil. The level of their dependence varies from 48 to 97%. Hence the conclusion suggests: given the low cost of oil in different countries, the members of the community, they do not suffer from the situation on the world market. Reducing the volume of production, they will hit their own economy. Decisions are made on the contrary: the more fuel is extracted, the better the country and its people.

Why is the demand for oil growing, and the price of oil falling?

In the past few years, the demand for oil in the world has increased several times. This was facilitated by the development of the economies of China and India. High demand indicators led to the fact that in mid-summer of 2014 the price of oil reached its peak at $ 117. The situation did not become statistical, by the middle of autumn the cost of the barrel had gone down to $ 60. In this case, "black gold" as it was, and remained in demand. An interesting fact is that the fall in fuel prices has no clear reasoned economic reasons, the states continue to actively develop, their needs are growing. Only in China over the past year, about 30 million cars have been produced. It is also interesting that the cost price of oil production in the countries has practically not changed.

The growth in supply overtook the increase in demand

Since the interest in oil in the market has grown, the reason for the fall in prices is most likely the increase in the volume of proposals that exceeded the skipping demand. The pace of extraction of the energy resource is actively increasing in Saudi Arabia and in the USA. The imprint on the formation of the cost of oil is imposed by the political situation and the conflict between Russia and Ukraine. History shows that any changes in geopolitics in a significant region of the world lead to an increase in energy prices.

Reducing the cost of oil production in the world - no additional income

Modernization of oil production technology has led to a reduction in the cost of fuel. In theory, exporting states should have had a good profit from the current situation. In contrast to all expectations, the cost of fuel on the world market collapsed. The development of the industry and the reduction in the cost of oil development led to losses. There are several reasons for this:

• Lifting sanctions from Iraq, increasing the share of its fuel on the international market.
• Restoration of Libya and its oil industry.
• Deliveries of contraband oil to the international market at understated prices.
• Increased production of unconventional oil (shale, on sands and heavy).

Limit of profitability of oil production

The fall in value can not be carried out to infinity. As soon as the cost of oil in the world is almost equal to the cost of fuel in the market, you can expect a reversal. Here the fact that each state has its fixed price of fuel production works. The change in prices has a global impact on government revenue and the profitability of oil production. In fact, they spend the least on the fuel production of the Persian Gulf state. This is due to the small depth of the fossil and the close location of the area of fuel development to the end user. The cost of building and maintaining technology is minimal. The highest cost price of oil production in the world for America, since it works exclusively with shale minerals. Getting them is very difficult and financially difficult. Almost the whole world refused this technology. According to analysts, the profitability of such fuel will remain at a level if in the world market the cost of a barrel will not fall below $ 75. In fact, the situation is different: despite the fact that prices went for the figure of $ 50, America continues to actively develop deposits of fossil.

Instead of concluding

The cost price of oil in Russia is much lower than in America. Nevertheless, the US continues to increase the amount of fuel produced, which experts directly connect with political conflicts in the modern world. So, if in October 2014 the volume of fuel production was equal to 8.9 million barrels, then in 2015 it is planned to raise to 9.4 million. It is underwater currents that determine the situation on the world oil market, economic factors are completely absent this time.