Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (108101)	10/24/2014 12:02:01 AM
From: elmatador	Respond to of 219848

evidence please

To: Jacob Snyder who wrote (108101)	10/24/2014 2:51:41 AM
From: elmatador	Respond to of 219848

You should read the Brazil Board Oil Bust Has Brazil in Deep Water Message 29766426

To: Jacob Snyder who wrote (108101)	10/24/2014 3:08:39 AM
From: elmatador	Respond to of 219848

There are two very important break-evens. One is the break even point for a oil depending on the source: tar sands, Shale, deep water, ultra deep water... Another break-even is the this one. They have nothing but oil. US and Brazil Middle East oil or no Middle East oil they will have what it takes to keep their economies moving. These countries no. Without high oil prices is check mate amigo! this was oil prices 2012. Now lower that black line to today's oil prices and you see who is doomed. In this graph are contained the hopes and fears of the world’s petro-states. Anything that you see as worrying in the west is nothing compared to that amigo!

To: Jacob Snyder who wrote (108101)	10/24/2014 3:39:03 AM
From: elmatador	Read Replies (1) \| Respond to of 219848

and the other break even point rystadenergy.com

To: Jacob Snyder who wrote (108101)	10/24/2014 7:54:55 AM
From: Elroy Jetson	1 Recommendation Recommended By KyrosL Read Replies (2) \| Respond to of 219848

I think you'll find it difficult to find documentation for elmat that offshore oil production in Brazil has a break-even of $80 per barrel. - - - Not necessarily because you're wrong, but because the offshore fields are new and the accurate information which does exist is confidential. In August 2014 Petrobras reported a "lifting cost" of $14.57 per barrel. But this excludes: A,) severance taxes imposed by Brazil; B.) depreciation of the capital invested in the wells and transport network; C.) amortization of capital cost which went into exploration. In 2008 Petrobras asserted that their offshore exploration would prove to be profitable with oil prices below $35 per barrel, but I doubt their bluster is supported by a complete cost analysis. Offshore production costs (lifting cost + Parts A and B above) in Angola run about $40 per barrel. Goldman Sachs estimates the break-even costs of pre-salt offshore production in Angola is $80 per barrel - $40 to find the oil and $40 to produce it. Wells in Angola are slightly more shallow and the geologic formations less problematic and costly to drill. On the other hand Angola is unstable with much higher security costs and severance "tax/bribe" costs. So is the break-even cost in Brazil higher or lower than $80 per barrel? Petrobras and Shell are discussing exploring new offshore fields with a break-even cost of $120 per barrel. Current offshore Brazilian wells break-even at $35 to 40 per barrel according to Goldman Sachs. Based on what I'd like to know - but their guesstimates make for an interesting chart.