The Kurdish government may be in some serious financial trouble due to low oil prices, but the region is also home to companies that can take oil out of the ground for as low as $1 a barrel.
“The lowest cost of production within the European E&P universe I look at is in onshore Kurdistan,” James Hosie, an analyst at Barclays, told Bloomberg. “It’s conventional wells, onshore. Those wells produce at very high rates.”
Despite the fall in oil prices and the rise of Islamic State, Kurdistan has two oil companies that managed to keep costs down pumping out incredibly cheap-to-produce oil. Genel Energy, for example, has reported keeping production expenses down to $1 per barrel of oil produced.
“Genel does stand out from the majority of its peers,” Hosie said. “It has very low-cost operations in Kurdistan.”
Posted by The Daily Caller.