Oil Is Donald Trump’s Foreign Policy
Pushing fossil fuels is the administration’s top priority
A tumble in the price from the year’s high above $115 per barrel to below $90 has focused investors and oil companies once again on the breakeven level – the point at which net return on a project turns positive.
“All told, roughly 2.6 million barrels per day of world crude oil production comes from projects with a breakeven price in excess of $80 per barrel,” the report said on Tuesday.
“Canadian synthetics (oil sands) projects have the highest percentage of production of the types examined here (about 25 percent) that would fall into a negative net present value if there were to be an extended period of prices below that level,” the report said.