After the oil rout in the last months it might be useful to return to this topic. The oil market has of course known far more dramatic movement and swings, and I have no idea what the oil price will be in a couple of months or years. Sounds obvious, but it is good to remind others and oneself of it.
Extraction costs from the Business insider are handy to put the current prices into perspective. Handle as always with care...
Another table by the (American) EIA.
The higher oil prices of this year mean that for most countries the budgets should be fine on that side. Things will be of course different if it prices stay so low for a longer period. There are of course the well-know feedback loops with investment which kick in but with so many variables it is impossible to say what impact it will have when.
What is Fiscal Breakeven for Oil States? is a blog entry which contains many links looking into the problem. I have actually posted quite a few of the same graphics over the months...
As stated before, ideally not-so-badly performing countries like the USA would use this opportunity to somewhat increase taxes on fossil energy consumption to curb global warming and increase it's longer term energy security. Some semi-flexible indexing might work. Won't happen of course...
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