December 21, 2014
...AND CHEAPER...:
Ready for $20 Oil? (A. Gary Shilling, 12/21/14, Bloomberg View)
How low can oil prices go? In the current price war, the global market price needed to support government budgets isn't really the main issue. Nor are the total costs for exploration, drilling and transportation.What matters are marginal costs -- the expense of retrieving oil once the holes have been drilled and pipelines laid. That number is more like $10 to $20 a barrel in the Persian Gulf, and about the same for U.S. shale-oil producers.
Posted by Orrin Judd at December 21, 2014 6:14 PM
Tweet