Unlike other commodities (that compete in the marketplace) the
world price OPEC sets for oil has no relation to what it costs to
produce the oil. Oil companies could make a handsome profit at 20 or 30
dollars a barrel. In 1999, Saudi Oil Minister Ali al-Naimi publicly
admitted that the all-inclusive cost of producing a barrel of oil in
Saudi Arabia — which has the easiest-to-produce oil in the world — is
$1.50. That is not a typo. A buck fifty. The world price is over $100 a
barrel, and the country that has the most influence on that price is Saudi Arabia.
Worldwide, it costs most oil producers about $5 to produce a barrel of oil.
The oil industry is shamelessly gouging.
The above is excerpted from the book, Fill Your Tank With Freedom.
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