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Page added on December 15, 2015
What it costs to produce oil
The collapse in the price of oil has squeezed energy companies and countries that were betting on higher returns. Here’s what it costs on average to pump a barrel of oil in the 20 biggest oil producing nations.
Overall cost to produce one barrel of oil
United Kingdom
$52.50
Brazil
$48.80
Canada
$41.00
United States
$36.20
Norway
$36.10
Angola
$35.40
Colombia
$35.30
Nigeria
$31.60
China
$29.90
Mexico
$29.10
Kazakhstan
$27.80
Libya
$23.80
Venezuela
$23.50
Algeria
$20.40
Russia
$17.20
Iran
$12.60
UAE
$12.30
Iraq
$10.70
Saudi Arabia
$9.90
Kuwait
$8.50
Notes/Methodology
This chart was compiled using data from more than 15,000 oil fields across 20 nations. The production costs were calculated by including a mix of capital expenditures and operational expenditures. Capital expenditures included the costs involved with building oil facilities, pipelines and new wells. Operational expenditures included the costs of lifting oil out of the ground, paying employee salaries and general administrative duties.
8 Comments on "What it costs to produce oil"
shortonoil on Tue, 15th Dec 2015 1:35 pm
Kuwait $8.50. A 4000 foot well, with a 50% water cut. 661 lbs, 4000 feet. Apparently that is what they use those magic carpets for!
penury on Tue, 15th Dec 2015 2:46 pm
I know that this is a oil site, but does anyone know what is going on with NatGas?
ghung on Tue, 15th Dec 2015 3:01 pm
Sort of like saying what it costs to produce a pair of shoes. All oil wasn’t created equal.
As for low natural gas prices; in part, a by-product of oil over-production, and warm weather. Supply/demand.
theedrich on Tue, 15th Dec 2015 3:11 pm
Hmmmm. So with Brent currently at $38 and WTI at $37 (as of Tuesday, 2015 Dec 15), what do the above numbers imply for their respective national economies?
rockman on Tue, 15th Dec 2015 4:55 pm
ghung – “All oil wasn’t created equal.” And more specifically not all drilling prospects are the same. There is no such animal as the “average” US oil well so there can’t be an average drilling or producing cost. For instance is their average a straight numerical avg. or is it weighted? How about this: if they ran statistics then they should be able to provide means and standard deviations for each country. But they don’t.
eugene on Tue, 15th Dec 2015 5:01 pm
I’m assuming these are well head costs? Do they include transportation, refining, etc. What exactly am I reading? Much of “energy costs” are agenda driven with manipulating the reader in mind. In other words, I, often, feel like I’m reading bullshit instead of anything I can come to a decision on.
ennui2 on Tue, 15th Dec 2015 6:04 pm
^^^ Obligatory tinfoil-hat-ism.
GregT on Tue, 15th Dec 2015 6:53 pm
^^^^ Baah!^^^^