that I was thinking about when I was looking at this. First of all, I remember Saudi Arabia, last time, I checked, which was a long time ago, Saudi Arabia had the lowest costs for production of oil. How is it that they are not profitable at these levels? So Saudi Arabian oil production is profitable at these levels. The companies aren't profitable. The company is profitable. The country uses that oil revenue to pay for government spending. So that's wrapped into the costs here. When they talk about this, the finances include the subsidies. Yeah. So some of it's around the subsidies. The other term you see out there in the marketplace is one called, there are a whole lot of break events that are thrown out there in the marketplace. What does it cost an oil company to produce the marginal barrel? That's still pretty low in Saudi Arabia. It's somewhere between $10 to $30, $30, depending where they are. They make plenty of money at this price point. The problem is the fiscal break events. (41/45)
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