Magic number (oil)

Magic number (oil)

The magic number is a term in economics that denotes the price of crude oil (measured in dollars per barrel) at which a crude oil exporting economy runs a deficit.

Some countries support almost all spending from income derived from oil exports. As the price of oil drops, these countries take in less revenue from oil. The magic number denotes the point at which the revenue from oil is no longer sufficient to pay for spending. Mathematically, this can be expressed by the inequality:

Q \times P > S

where Q is the quantity of oil exported, P is the price, and S is spending. The magic number is the value of P at which this inequality no longer holds true - that is, that the economy runs a deficit.

PFC Energy publishes the magic number for all the OPEC nations.

"Qatar is at $21 a barrel, because it brings in much more oil money than it spends. Saudi Arabia's break-even point is at $49 a barrel. And Venezuela is at $58, second only to Nigeria's $65."[1]

See also

References

  1. ^ Chavez puts Venezuela's future on oil



Wikimedia Foundation. 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Magic number — may refer to: Magic number (chemistry), number of atoms or molecules forming an exceptionally stable cluster Magic number (sports), a number that indicates how close a team is to winning a season title Magic number (oil), the price per barrel of… …   Wikipedia

  • magic lantern —    A precursor to the modern slide projector, an optical instrument having either a way to use sunlight or a candle (and later an oil lamp, oxy hydrogen limelight, or arclight ) and a lens through which an image painted or printed on a glass… …   Glossary of Art Terms

  • 42 (number) — ← 41 43 → 42 ← 40 41 42 43 44 45 46 …   Wikipedia

  • List of species in Magic: The Gathering — Magic: the Gathering is a collectible card game set in a richly detailed fictional world. The Multiverse of Dominia in which it takes place is host to a vast number of individual universes known as planes, from the varied classical environments… …   Wikipedia

  • Ceremonial magic — Ceremonial magic, also referred to as high magic and as learned magic,[1] is a broad term used in the context of Hermeticism or Western esotericism to encompass a wide variety of long, elaborate, and complex rituals of magic. It is named as such… …   Wikipedia

  • Breaking the Magician's Code: Magic's Biggest Secrets Finally Revealed — Title card from the first episode. Subsequent episodes had a number after REVEALED. Format Reality Documentary …   Wikipedia

  • Central Oil Storage — (COS or Central Storage) is the term used for a communal heating system pioneered in the middle of the twentieth century.The concept was simple and effective, using oil (usually kerosene, but sometimes gas oil) in the way that natural gas is used …   Wikipedia

  • List of number-one mainstream rock hits (United States) — This is a list of all the songs that have hit number one on the Hot Mainstream Rock Tracks chart, previously named Top Tracks (1981–1984), Top Rock Tracks (1984–1986), and Album Rock Tracks (1986–1996).[1] Contents 1 1981 2 1982 3 1983 …   Wikipedia

  • Gospel Magic — is a specialized form of stage magic. It refers to the use of otherwise standard magic tricks and illusions to catechize those preparing for sacraments, in the Catholic, Lutheran, Anglican and Orthodox Churches or during general preaching, or… …   Wikipedia

  • The Magic Goes Away — is a fantasy short story written by Larry Niven in 1976, and later expanded to a novella of the same name which was published in 1978. While these works were not the first in the Magic Universe or Warlock series, they marked a turning point after …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”