OPEC and Pricing Power

Doug Henwood dhenwood at panix.com
Thu Mar 20 12:13:11 PST 2003


Ulhas Joglekar wrote:


>I wonder what is the breakeven point in the petroleum industry.

Depends on where you're talking about. Costs of production in Saudi Arabia are around $2 a barrel; in the North Sea, over $10. The price that balances lots of interests - keeping Texas pumping while avoiding contractionary or inflationary economic impulses - is probably around $20 a barrel.

Doug



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