In the oil and gas industry, operational costs per barrel can vary significantly based on factors such as geography, extraction methods, and resource quality. Here's a contextual overview: - **Middle Eastern Producers:** Countries like Saudi Arabia, Iran, and Iraq benefit from easily accessible oil reserves, resulting in some of the lowest production costs globally, often below $10 per barrel. - **North American Shale Oil:** Extraction from shale formations in the U.S. has higher costs due to advanced drilling techniques. In 2015, the breakeven price for North American shale oil was around $68 per barrel, but by 2019, improvements had reduced the average breakeven price to about $46 per barrel. - **Canadian Oil Sands:** Production from oil sands is among the most expensive, with breakeven prices averaging $83 per barrel in 2019.