Russia and Saudi Arabia
According to data compiled by Rystad Energy, the cost of production per barrel of crude oil is $17.20 in Russia—compared to $9.90 in Saudia Arabia. Saudi Arabia accounts for 15.7% of the world’s total crude oil reserve. Russia (RSX) accounts for 6.1% of the world’s total crude oil reserve. However, there are other reserves in the Arctic Circle. This can increase its share in the total crude oil reserve.
Geographically, Russia borders about 60% of the Arctic Circle. The reserves can help propel the Russian oil and gas industry as well as the Russian (RSX) economy at large. The other member countries like Iran and Iraq have a break-even cost $12.60 and $10.60. Kuwait has the lowest production cost of about $8.50. It takes a break-even cost of $12.30 in the UAE (United Arab Emirates) to produce one barrel of crude oil.
The above graph shows the break-even cost for Russia and some prominent OPEC (Organization of the Petroleum Exporting Countries) members.