BoatBanter.com - View Single Post - Unwanted diesel and jet fuel cargoes are backing up outside Europe's ports

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On Thu, 29 Oct 2015 15:37:39 -0400,
wrote:

On Thu, 29 Oct 2015 09:40:23 -0700, Califbill billnews wrote:

Tim wrote:
On Thu, 29 Oct 2015 10:15:48 -0400, Keyser Söze
wrote:
- show quoted text -
I think this may be a bit more strategic. The saudis are selling oil
at lower than their production cost and I doubt it is out of the
kindness in their heart.
....

Probably using the same tactic the cartels pulled in the 80s to bust
their world competitors, then raise it back

I doubt it is below their production cost. Their cost is very low. A lot
lower than our costs. They do not require pumps on the wells, and have 13"
casings. I think ours are 6". Lots of gas pressure forces out the oil.

===

The real cost to the Saudis is what it costs them in drilling and
exploration expenses to maintain current flow, plus their
infrastructure costs which are quite low. There are probably some
numbers available on their drilling and exploration expenses since
they contract that out.

You could get an idea by looking at the financials of schlumberger and
haliburton. They both have operating units that only operate in that
area.