We are excited to announce that as of February 1, Wood Mackenzie is a portfolio company of Veritas Capital, a leading investor at the intersection of technology and government. Our focus remains on providing you with the best intelligence, analytics, data and tools to ensure you are making the best data-driven business decisions with confidence.  

Read more in our news release here. 


Oil price crash: what supply might be shut in?

Get this report


You can pay by card or invoice

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

17 March 2020

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
    • 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:

  • Document

    Oil price crash: what supply might be shut in?

    PDF 864.34 KB