What is the cost to extract oil per barrel in the given context?

• A. $5-6 per barrel
• B. $10-12 per barrel
• C. $18-20 per barrel
• D. $22-24 per barrel

Answer: (B)

Cost to extract oil per barrel is the ongoing cash cost of bringing a barrel to market, excluding upfront exploration and development. It covers operating expenses like labor, energy, maintenance, and logistics, spread over the produced volume. In many typical onshore operations, these lifting costs sit in the low to mid-teens per barrel. Among the options, the 10-12 dollars per barrel range best matches that usual level, making it the most reasonable estimate given the described context. The lower end (5-6) would imply unusually cheap operations not common in standard scenarios, while the higher ranges (18-20 or 22-24) would point to more complex or offshore assets with higher per-barrel operating costs.