Insight
Oil price crash: what supply might be shut in?
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 6 images and tables including:
- Price sensitivity for core resource themes
- Countries with production most at risk
- Saudi, Russia and US SRMC curves
- Top 20 producers and their SRMCs
- Saudi, Russia, US oil revenue dependence
- Price-sensitivity of the Russian Government’s share of oil revenue
What's included
This report contains:
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