What is the production cost of 1 barrel of crude oil ?

Presently 1 barrel is aroung US$ 90 in the international trade. So, what is the production cost and the profit on 1 Bbls of crude ?

3 Responses to “What is the production cost of 1 barrel of crude oil ?”

  1. marcopohlo Says:

    Depends upon the country and method of production.

    In the middle east, where you can basically stick a straw in the ground and get oil, it’s quite cheap – some estimates have it at $5 per barrel. When you have to use more complicated extraction procedures, like for Canadian oil shale or tar sands, oil can cost quite a bit more – over the current price $90 per barrel, in some cases, which means that it is not economically feasible to extract it.

  2. Shanks P Says:

    About $75-80

  3. Spotty J Says:

    Like Marcopohlo says above, depends entirely upon where you’re drilling. I don’t know what the worldwide average would be, but it’s a good bet the high end is close to the current price-per-barrel, because oil suppliers would presumably not continue to work a well that’s losing them money on every barrel.