What if we only offered OPEC $10 per barrel of oil?

Question

How long could OPEC survive without selling oil to the USA?
How long could the USA survive without oil from OPEC?

Answer 1

If we offered $10 per bbl of oil, we would not get any oil. The cost to produce that oil is more than $10 so they would be better off keeping it in the ground. In case, oil is traded globally and it is likely that others would offer more for oil.

As far as how long OPEC survives is a question of budget surpluses relative to budgetary needs. I think the answer depends on which countries we are talking about. Iran and Venezuela are probably on shakier ground than say a Saudi Arabia and its $100B budget surplus.

The US would survive 70-90 days assuming we draw down SPR (strategic petroleum reserve) and maintain current production and non-OPEC oil imports (at market prices and not $10). If you assume we only pay $10 for oil (which means no oil is sold to the US), the the SPR would last about 30 days (more or less).

Answer 2

If we only offered $10 per barrel, dont expect them to be sending us any oil at all. And the USA would only prolly survive a day or two because the country is too dependent on oil.

Answer 3

I feel if we get all the oil out of the USA the country will not have to go to War with the country that have oil and spin lot of money on the war so they can keep all the oil for them self.

Answer 4

If we offered them $10 a barrel, we wouldn't have oil. They could probably survive longer without selling to us than we could without their oil.

Answer 5

If China and Japan offered $ 11.00 a barrel, that's where the oil would go.

Answer 6

1. They would laugh
2. Probably not very long
3. Not over a week