What it Costs to Produce Oil

Continuing low oil prices hurt some countries more than others. The cost to produce a barrel of oil varies widely based on a number of economic factors including the efficiency of operators. With the average price hovering around $40-42 per barrels it’s easy to see which countries are in trouble and which can hold out. Statistics on the average cost per barrel is based on a survey of over 6,500 oil and gas fields worldwide. In the United Kingdom the cost is $52.50, Canada’s cost is $41. Brazil’s cost is $49 per barrel. In the U.S. the surprising average cost is $36 per barrel to produce. Saudi Arabia’s cost is less than $10. While Iraq‘s average is $10.70. The International Monetary Fund recently predicted that most counties in the Middle East will run out of cash in five years if oil prices don’t rise above $50 per barrel.