One of the largest oil companies in the world says it needs crude prices to be at $60-a-barrel for it to balance its books. Texas oil-and-gas economist Karr Ingham says that number will vary, from producer to producer.
“What is the break-even price?” Ingham asks. “Well, the break-even price is different for different companies, depending on their individual sets of circumstances.”
He doesn't expect it to get up to $60 this year without unforeseen factors.
“Texas and North American producers -- U.S. producers -- are going to begin to fill-in that gap that was vacated by production cuts by OPEC,” he predicts, “which in turn just has the effect of keeping a lid on prices.”
British Petroleum needs the higher price because it has been spending a lot of money in recent months, including the purchase of a giant, off-shore gas field in Egypt.