Can the price of gasoline and fuel oil come down? or is the cost of recovering energy from shale oil just too forbidding to bring 1990 prices to reappear? Seriously — ???
posted on 09/24/2013 12:47:10 AM PDT
Outside the Middle East, the marginal cost of oil skyrockets, so do gas prices.
As the West is running out of cheap oil, we have to use very expensive drillings.
Outside the Middle East, the marginal cost of oil production is around $100 per barrel.
The marginal cost is simply the cost required to produce the next barrel of oil the moment the world needs it.
And if that next barrel costs $100 to find, produce and get to market, then the cost for all barrels of oil goes to $100.
posted on 09/24/2013 2:57:09 AM PDT
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