[Lonesome in Massachussets]

You are not accounting for operating costs.

Still the present value (PV) of 500,000 barrels @ $29/ barrel, for 29 years, at 10% real interest is north of $300,000,000 smackers. You’d need HUGE maintenance and operating costs to make that investment unattractive.

Or the fear of unfavorable government intervention.

[Errant]

I over estimated the well cost and under estimated total production (according to their estimates). If you’re going to consider such things as business climate, then please also include the likelihood that the market price for oil will also increase. Maintenance costs aren’t that huge, relatively speaking. The one thing I didn’t include were transportation costs and their total average production numbers seems quite high to me. I’m beginning to think there is a bit of hype concerning the Bakken play. :)

[Errant]

then please also include the likelihood that the market price for oil will also increase.

Oops, sorry... I see you did. ;)

[DUMBGRUNT]

A typical 2012 North Dakota Bakken well will produce for 29 years, producing an average of 580,000 barrels of oil.

Or the fear of unfavorable government intervention.

From one of the few bright spots in today's economy straight into the heart of darkness!