Fitch Ratings, a global leader in financial information services, has offered up their per barrel of oil, break-even statistics on some of the major oil-producing nations in the Middle East, Africa and North Asia. To estimate the break-even price to attain a balanced budget, Fitch used an oil forecast of $52.50 a barrel, on average.
A few of the countries’ break-even numbers are astonishing—especially Nigeria—which is the worst off with an estimated oil price of $139 a barrel. Kuwait is in the best position, needing only a $45 oil price average to balance its budget.
Though a company is obviously different from a country, a major focus at TAG Oil has always been to keep production costs low, not just on the operations side but with G&A as well. TAG currently has a break-even point of US $34 per barrel ($25 – $27 /boe not including G&A). With Brent crude sitting at an average of $55 a barrel this year, we’re doing ok.
Check out Fitch’s forecast 2017 break-even oil prices, per barrel: