Oil, equivalent to the dollar and gold, isone of the most powerful levers of economic regulation. For promising oil fields are constantly being waged between states, some government apparatus are replaced by others. Energy in its structure belongs to the category of country-forming industries, as a breakthrough in this direction leads to the dawn in most areas of the country. The more a country is capable of extracting "black gold", the lower the cost of its production, the higher the chance for the state for the prosperity of the economy and for gaining a strong position in the world market.
Cost of resource extraction by country
The cost of oil production by countryis different. For example, in Saudi Arabia, the cost of fuel extraction does not exceed $ 10 per barrel. On the territory of Russia, this figure varies from 30 to 40 dollars. In America, this value in some regions reaches the level of 60-70 dollars. With Canada, a separate situation. In the production of oil in the sand has to spend about 120-150 dollars per barrel.
Does the situation put the shale revolution in the United States at risk?
The situation with prices on the oil market and costoil production by country, especially in the United States, in the opinion of a sufficiently large number of experts, threatens the "shale revolution". If the price of a barrel of oil does not rise closer to the $ 80 mark in the near future, it will be simply unprofitable to produce it. No one wants to work to the detriment of himself. The low cost of black gold and the high cost of oil development work open the way for countries such as India and China to the world market. If the cost of energy drops to $ 30, a major player like Russia will be squeezed out of the market. The only way out of the situation is the beginning of the sale of oil by countries in their own currency without reference to the dollar rate.
The opposite side of the coin isthat the cost of oil production announced by the public by country is not actual. New fossil deposits are systematically developed, its production technologies are being improved and cheapened. Many countries can withstand much higher loads from lowering global fuel prices.
Table of the cost of developing a barrel of oil by country
We study the table of the cost of a barrel of oil in each of the producing countries of the world.
| A country | The cost of a barrel of oil produced in US dollars |
| Shale Oil in the USA | 32 |
| Russia in old fields | 28 |
| Oil production in the USA on the shelf of the Gulf of Mexico | 25 |
| Norway, development in the North Sea | 17 |
| Bituminous oil in canada | 16 |
| Russia, exclusively new fields | 16 |
| Nigeria | 11 |
| Mexico, Venezuela, bituminous oil production | 9 |
| Algeria | 8 |
| Libya | 7 |
| Russia, the most promising projects | 6 |
| Kazakhstan | 6 |
| Iran | 5 |
| Saudi Arabia | 4 |
From the table it is clear that the most confidentSaudi Arabia feels on the international oil market. And it is she who is an ardent member of OPEC, who categorically refuses to reduce oil production. The fall in prices, which terrifies many states, does not frighten her. Many analysts admit that with such behavior the country simply wants to oust its main competitors from the world arena.
The table shows the data that showthe cost of a barrel of oil without taxes to the state treasury and without the cost of excise, 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 not taxed, and therefore, private companies have excellent development prospects and excellent conditions for entering the international market. State support plays a big role.
Details of the cost of oil in the United States
The cost of oil in the United States is significantly differentdepending on the place of production and the specifics of the mining technology used. So, back in 2012, the major mining companies in America spent about $ 100 on the technology used to extract shale oil. In 2015, this figure 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 the figure of $ 22 per barrel. Maintenance of active oil production plants is half the cost. Finding exactly what the cost of a barrel of oil in America is not possible. Everything will be obvious with time, as the situation develops in the oil market.
What are the prospects for the United States?
Оценивая себестоимость добычи барреля нефти на the territory of America, many experts do not cease to ask the question of at what specific indicator of prices on the world market fuel production will be unprofitable for the state. According to statistics from one of the largest agencies, only 4% of the oil produced at the moment remains beyond the margin of profitability. Large deposits in North Dakota successfully operate and continue to develop today. In addition, new areas are constantly being explored and potential deposits are being assessed. The most productive region of the United States is Mackenzie County, where the cost of a barrel of oil does not rise above $ 28. Great influence on US policy has a strategic fuel reserve. According to preliminary estimates, by now it is already enough to meet all the needs of the state for the next three years.
How much does oil production in Russia cost?
The cost of oil in Russia is not formedonly due to the specifics of its production, its large part is justified by the accompanying costs. The entire revenue of Rosneft can be conditionally denoted by the figure of 100%. At the same time, 55% of revenues are deducted to the state to pay excises, MET and customs duties. 10% of total income is spent on preliminary research of fields, on the installation of oil-producing equipment, on finding customers and concluding contracts with them. Add to the total cost item 8.4% of the cost of a barrel for delivery to consumers and 7.6% for the depreciation of all Rosneft resources (machinery, buildings, equipment, drilling rigs, etc.). The company, in addition to producing energy, also buys it from third-party enterprises, and pays at least 8.6% of its revenue for its processing. Net profit after the sale of "black gold" is not more than 10%.
The cost of oil in Russia, despitethe generally accepted figure, which ranges from $ 12 to $ 25, is much larger. If we take into account the cost of renting land or buying rights to use it, the cost of building the infrastructure that is optimal for extracting fuel, we get a figure of around $ 70 per barrel, which is an order of magnitude more than in America.
Why do OPEC countries do not reduce oil production and are content with low prices?
The cost of oil in Saudi Arabia is the mostlowest in the world. It ranges 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 fall 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 the extraction of fuel is Indonesia, whose profits are formed by the tourism industry, the gas industry and the sawmill. All other OPEC members survive to a greater or lesser extent thanks to oil. The level of their dependence varies from 48 to 97%. This suggests a conclusion: given the low cost of oil in different countries participating in the community, they do not suffer from the situation on the world market. By reducing production volumes, they will hit their own economy. Decisions are made from the opposite: the more fuel is mined, the better the country itself and its people.
Why is the demand for oil rising and the price of oil falling?
In the past few years, demand for oilin the world increased several times. This was facilitated by the development of economies of China and India. High demand figures led to the fact that in mid-summer 2014, the price of oil reached its peak at 117 dollars. The situation did not become statistical, by the middle of autumn the cost of a barrel had dropped to $ 60. At the same time, "black gold" as it was, remained in demand. An interesting fact is that the fall in fuel prices has no clear-cut economic reasons, states continue to grow rapidly, their needs are growing. Over the past year alone, about 30 million cars were produced in China alone. It is also interesting that the cost of oil production in the countries has practically not changed.
Growth in supply surpassed demand increase
As interest in oil on the market grew, the causefalling prices, most likely, was an increase in the volume of proposals that exceeded the jumped demand. The pace of energy resource production is actively increasing in Saudi Arabia and the United States. The political situation and the conflict between Russia and Ukraine imposes an imprint on the formation of oil prices. 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
Модернизация технологии добычи нефти привела к reduce 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 in the global market has collapsed. The development of the industry and the reduction in the cost of oil development led to losses. There are several reasons for this:
- The lifting of sanctions from Iraq, the increase in the share of its fuel in the international market.
- Restoration of Libya and its oil industry.
- Deliveries to the international market of contraband oil at reduced prices.
- Increased production of unconventional oil (shale, sand and heavy).
The margin of profitability of oil production
The fall in value cannot occur untilinfinity. As soon as the cost of oil in the world is almost equal to the cost of fuel on the market, we can expect a reversal. Here works the fact that each state has its fixed price of fuel production. Price changes have a global impact on government revenue and the profitability of oil production. In fact, they spend the least on fuel extraction in the Gulf states. This is due to the small depth of the fossil and the proximity of the area of development of the fuel to the final consumer. The cost of building and maintaining technologies is minimal. America has the highest oil production cost in the world, since it works exclusively with shale minerals. To extract them is very difficult and financially difficult. Practically the whole world refused such technology. According to analysts, the profitability of such fuel will remain at a level if the cost of a barrel in the world market does not fall below $ 75. In fact, the situation is different: despite the fact that prices have gone beyond the figure of $ 50, America continues to actively develop mineral deposits.
Instead of concluding
The cost of oil in Russia is much lower thanin America. Nevertheless, the US continues to increase its fuel output, which experts directly associate with political conflicts in the modern world. So, if in October 2014 the volume of fuel production was equal to 8.9 million barrels, in 2015 it is planned to increase it to 9.4 million. It is precisely the undercurrents that determine the situation on the world oil market; economic factors are completely absent this time.
