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originally posted by: snowspirit
a reply to: Bluntone22
It was mentioned on the news a while back that Saudi breaks even on the extraction of their oil at $20 a barrel. Canada's break even point is $44 a barrel.
Saudi won't go broke until they finish breaking the rest of us....
Oil is down around $42 a barrel right now.
originally posted by: Bluntone22
a reply to: Bone75
Well it's all going to depend on the oil prices. The American and Canadian oil fields pumping out $4 gas really kicked the gulf in the butt. When the price goes up, we pump. When it goes down, we buy theirs.
Time will tell I guess.
originally posted by: Bone75
a reply to: Bluntone22
Saudi Arabia will be just fine. As John Kerry just publicly admitted, the reason gas prices are so low is because Obama pressured China and several other countries to stop buying oil in order to bring Iran to the negotiating table.
Now that the deal has been signed, those countries are buying oil again and gas prices are going back up. Expect them to go WAY up in the coming months.
originally posted by: StanFL
The break-even point is where they can recover the oil extraction costs, not when they can fund their government budget.
originally posted by: Thecakeisalie
a reply to: Bluntone22
The opulence cannot be sustained.
The shift towards a healthier, cleaner future will not do them any good. You see the extravagant hotels, the absurd infrastructure ideas, it cannot be sustained.
Sooner or later that well of fossilized wealth will either be depreciated in value due to external influences, or their stockpiles will be 'swindled' by external influences. It's a lose-lose.
originally posted by: snowspirit
a reply to: Bluntone22
It was mentioned on the news a while back that Saudi breaks even on the extraction of their oil at $20 a barrel. Canada's break even point is $44 a barrel.
Saudi won't go broke until they finish breaking the rest of us....
Oil is down around $42 a barrel right now.
Saudi Arabia has issued bonds worth 20 billion riyals ($5.33 billion), and plans to raise billions more to maintain its spending plans, as the world’s top oil exporter grapples with lower revenues amid a dramatic drop in energy prices.