Economy: Ministry of Energy: Cost of Production of Russian Oil Is $2 per Barrel
Translated by Kristina Kharlova
According to the Deputy Minister of Energy of Russia Kirill Molodtsov, "the average production cost of a barrel of Russian oil is about $2. The cost of producing hard-to-recover and offshore reserves is above $20. The rates also vary significantly depending on the cycle of mineral development. With declining production, the cost is higher, since at the same cost level less oil is extracted," - said the official.
Earlier the president of "Rosneft" Igor Sechin said that because of financial speculators oil prices could fall to $10 per barrel. According to him, the annual decline in average daily production in the world is estimated at 3 million barrels a day. Meanwhile, according to Sechin, the excess of supply of oil over demand is between 1.5 and 1.7 million barrels a day, according to RBC.
Saudi Arabia is ready to sign an agreement on limiting oil production, even if Iran does not.
|Place||Cost of production in northern hemisphere autumn 2014|
|Saudi Arabia||US$10–25 per barrel|
|Montney Oil Alberta and British Columbia||US$46|
|Eagle Ford, USA Shale+||US$40–50 (+ Liquids-rich Eagle Ford plays, assuming natural gas prices of US$3.80 per mmbtu)|
|Lloyd & Seal Conventional Heavy, AB||US$50|
|Conventional Light, Alberta and Saskatchewan||US$58.50|
|Nebraska USA Shale||US$58.50|
|SAGD Bitumen Alberta||US$65|
|North Dakota Bakken, Shale||US$54–79|
|Permian Basin, TX Shale||US$59–82|
|Oil sands legacy projects||US$53|
|Oil sands mining and infrastructure new projects||US$90|