Here Are The Most And Least Expensive Ways To Drill For Oil

There are a bunch of ways to drill for oil. 

You can drill it in your backyard if you’re in the right spot, or you can go just offshore and drill it from the ocean.

You can also frack for it or extract oil from tar sands. 

But whichever way you choose to procure your oil, the costs are going to be different. 

On Monday, the price of West Texas Intermediate oil — the US benchmark price — traded below $US53 a barrel for the first time since May 2009, bringing WTI’s decline to nearly 50% from its June highs. And as the price of oil has declined, many have asked what the “breakeven” price is for various oil projects around the world. 

In a post last week, Rabah Arezki and Olivier Blanchard of the IMF broke down some of the questions hovering over the oil price slump.

Arezki and Blanchard also included this chart, which shows the cost curve — or how much it costs to keep a project going — not grouping the projects by location but by how they drill. 

Onshore drilling is the cheapest, benefiting many Middle East suppliers, while fracking and oil sands are most expensive, pressuring US and Canadian producers.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at