crimsoncyclist71 said:The cost of producing a single barrel of Brent crude oil came in at around $42 for Russian onshore projects, and $44 for offshore projects, IHS Markit estimated. That was more than twice the $17 per barrel production costs in Saudi Arabia — the cheapest in the world.
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Oil production in Russia costs $42 a barrel. In Saudi Arabia, it's $17, which is the lowest. Where did you get that $7 figure from? Probably from the myths you're always spinning.
If you had actually taken the time to read the article through to the end, you might have realized that the actual cost of extraction is much closer to my initial estimate; instead, you jumped to a conclusion based solely on the first paragraph.
The figures I cited were gathered from Dekanić or Štern, both of whom I consider to be among the premier experts on the oil business in America. I'd give the edge to Štern, given he spent his entire professional career working directly in operations.
As for the rest of the article, there is this specific passage:
Differences in production costs don't just depend on how easy it is to extract the resource or the project's location, but also on the taxes levied by governments in various jurisdictions. The U.S. Census Bureau estimates that operating costs without taxes would sit around $32 per barrel in Russia, according to reports from RBC.
To be clear, I never claimed the cost was $7 per barrel; I said it was $9 in Saudi Arabia and $19 in Russia.
It stands to reason that pulling oil out of the harsh conditions in Siberia is going to be significantly more expensive than extracting it in many other parts of the world.
I won't go down that rabbit hole here because I know I'm being watched quite closely as it is,
but I simply wanted to point out that even with sanctions in place, Russia is still making a massive profit at $80 a barrel. Since the major oil companies there are state-owned, an enormous amount of cash flows directly into the national budget, providing Russia with the funds necessary to finance the war despite all the sanctions.
Keep in mind that the extraction cost per barrel in Russia is merely an estimate from IHS Markit, just as that $32 figure is just an estimate from the U.S. Census Bureau.
So, despite the sanctions, Russia continues to export oil with healthy margins to Sika, where it gets refined into derivatives and shipped globally, essentially serving as Indian products and derivatives.
The sanctions have been a massive failure for the West. Looking at the big picture, it isn't just self-inflicted damage; it’s an assault on all the postulates and ideals that the West and America have clung to for years, treating them like sacred dogmas.
But that is a much larger topic, and I see the moderator has already turned red and warned us to stick to the subject matter.
It is actually quite difficult to stay on track when sanctions are so deeply intertwined with strategic shifts in the global landscape, and drifting away from the core topic is incredibly easy to do.
