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To: DB

I read somewhere that the cost to get the stuff out of the ground is only $5 - $10 a barrel. That’s why ISIS can afford to charge only $30 a barrel. The rest is profit. But some countries have grown dependent on the profit for their existence.


8 posted on 10/15/2014 1:45:27 AM PDT by firebrand
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To: firebrand

Russia doesn’t produce much beyond oil/gas and weapons.

For whatever reason they have major budget issues if oil goes much below $100 a barrel.


10 posted on 10/15/2014 1:53:23 AM PDT by DB
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To: firebrand
That’s why ISIS can afford to charge only $30 a barrel.

What did ISIS pay for? The stole the production they are selling.

A few well placed bombs would keep that oil from ever getting to market and deprive them of millions a day, even at fire-sale prices.

There's enough slack in the market now to do it without anyone being any worse off than they were a couple of months ago, too.

12 posted on 10/15/2014 2:28:01 AM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
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To: firebrand
You might be talking about the middle east but here are the cost curves for US based oil:


29 posted on 10/15/2014 6:36:21 AM PDT by Wyatt's Torch
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