“People should not be worried,” explained Kazakhstan President Nursultan Nazarbayev in a TV address over the weekend,“we have a plan in place if oil prices are $40 per barrel.” Kazakhstan, the second largest ex-Soviet oil producer after Russia, explains “there are reserves which could support people, preventing living conditions from worsening.” However, if A. Gary Schilling’s reality check of $20 oil being possible comes to fruition, as he explains, what matters are marginal costs – the expense of retrieving oil once the holes have been drilled and pipelines laid. That number is more like $10 to $20 a barrel in the Persian Gulf… We wonder who has a plan for that?
The Kazakh President says “don’t worry”, as Reuters reports…
This post was published at Zero Hedge on 12/22/2014.
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