All the countries in the energy industry are suffering as crude oil prices have slumped. But some oil producing countries are hurting more than others. But what happens, if oil price per barrel decreases till $20, when countries will not be allowed to hold dividends from producing a barrel of oil?

According to analysts of CNN, about 12 oil producing countries, including Kazakhstan, spend no more than $30 to produce a barrel of oil. High level of prime cost is estimated in the United Kingdom. It is around $52,50 a barrel. The British government is trading around $42 (the cost is higher because of the quality of crude oil) and trying to avoid the export of domestic oil. Brazil, Canada, Norway are also directing in this way.

Kazakhstan spends the sum of $27,80 to get a barrel of crude oil. Then export the raw product by eliminated price which now had already gone down to $31,1, making a profit little bit more than 3 US dollars. How we know, oil producing companies in Kazakhstan do not produce oil in European standard. So it claims that we cannot sell the barrel of oil in the higher price as the UK is doing. Then we have to work properly in Refineries to synthesize oil and sell them abroad. But Kazakhstan cannot export ready oil products so a lot as to cover all deficit.

[caption id="attachment_32064" align="alignnone" width="960"] Current statistics by CNN analysts[/caption]

Of course, it's hard to make money when the cost of producing oil is higher than the sales price. It's no secret that many major energy companies have already announced a range of cutbacks in high-cost countries.

On the other side of the coin, Saudia Arabia and Kuwait can pump a barrel of oil for less than $10, on average. Iraq can produce oil for about $10.70 per barrel.

Oil prices plunged in the back half of 2014 after trading above $100 a barrel. The drop came after a group of some of the biggest oil-producing nations in the world decided to continue pumping the same amount of oil despite clear signs that there was too much supply in the market.

Oil exporters, especially, Kazakhstan will need to adjust their spending and revenue policies to ensure fiscal sustainability

Photo: etoday.kz, cnn.com