Cost Of Producing A Barrel Of Oil

Heartland Park (they are still playing pickleball!)

Park Rapids, Wisconsin

August 31, 2024

Maybe I didn’t try hard but it is surprisingly hard to find current costs for the production of a barrel of oil. The above chart is from 2017.

From my cursory investigation, it appears that the cost of producing oil by fracking is around $50 per barrel (in about 2020 dollars).

I don’t know how these numbers accounting for the shared costs of producing natural gas for resources that produce both.

Anyway, the chart is useful for comparison purposes. We produce a lot of oil in the US but it cost 3-4X more than in does in much of the Middle East.