Deepwater Drilling Offshore of the US yields oil at $57 per barrel (see note 1) and, according to Forbes, the Break-Even price is $65 per barrel. It makes no sense to drill deepwater wells offshore of the US with WTI crude oil under $35 per barrel And given that the costs to produce a barrel of oil in the Middle East, range from $8.50 in Kuwait to $9.90 in Saudi Arabia, to $12.60 in Iran WE CAN’T COMPETE!
But we shouldn’t bother. We should move to a post fossil fuel economy.