Big Oil Company Hoping for $60 Crude

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.

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