How Much Does it Cost to Produce A Barrel of Oil Around the World

Everyone in the energy industry is suffering as crude oil prices have slumped. But some oil producing countries are hurting more than others.

In the United Kingdom, it costs $52.50 to produce a barrel of oil — which is trading right now around $42.

Oil production in Brazil costs nearly $49 per barrel. Production costs around $41 a barrel in Canada.

In the United States, production costs are $36 a barrel — still below the trading price.
Those findings are from Rystad Energy’s UCube database, which has information from roughly 6,500 oil and gas fields around the world.

Of course, it’s hard to make money when the cost of producing oil is higher than the sales price.

It’s no secret that many major energy companies have already announced a range of cut backs in high-cost countries.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza