Helping America Navigate a New Energy Reality

What it costs to produce a barrel of oil

By on 24 Nov 2015 in analysis, notable posts

cost to pump oil

(CNN) 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 65,000 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.

On the other side of the coin, Saudia Arabia and Kuwait can pump a barrel of oil for less than $10, on average. Iraq can produce oil for about $10.70 per barrel.

Rystad’s head of analysis, Per Magnus Nysveen, provided CNNMoney with the oil production data and said it clearly illustrates how Gulf states are in a much stronger position due to their low costs.

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