Insight
Oil price crash: what supply might be shut in?
This report is currently unavailable
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
How low can the price go before different sources of production become uneconomic? Where are production shut-ins most likely? Can governments influence the result? Using our Lens database, we calculated global short run marginal costs (SRMC – operating costs + taxes and royalties) for current production, at the asset level. At a Brent price of US$35/bbl, revenue from 4 million b/d (4%) of global liquids supply does not cover production costs and government share. This rises to 10 million b/d (9%) if prices fall to US$25/bbl.
Table of contents
- Resource theme differentiation is dramatic
-
Shut-ins are usually a last resort
- Downward pressure on operating costs
- Direct impact of the coronavirus outbreak
- Saudi Arabia
- Russia
- The United States
- Other producing countries
Tables and charts
This report includes the following images and tables:
-
Price sensitivity for core resource themesCountries with production most at riskSaudi, Russia and US SRMC curves
-
Top 20 producers and their SRMCsSaudi, Russia, US oil revenue dependencePrice-sensitivity of the Russian Government’s share of oil revenue
What's included
This report contains:
Other reports you may be interested in
Asset Report
Eagle Ford unconventional play
A detailed analysis of the Eagle Ford tight oil unconventional play.
$2,800
Insight
Non-OPEC supply at US$50 Brent in 2025 and 2026
At US$50/bbl, US onshore Lower 48 shows the quickest and largest reaction, but it takes until 2026 to gain a sizeable effect
$1,350
