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To: lonestar67
even if the costs are higher

Unless you plan to nationalize the US oil industry and steal assets from individuals, price matter a lot.

8 posted on 11/03/2015 11:00:08 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney

A big factor in the cost of production is the cost of getting it to market.

I remember reading somewhere that West Texas oil took a $20 a barrel hit due to the lack of pipeline space, so much of it has to be delivered by (I assume) rail cars and trucks.

While the pipeline network tying Bakken into the rest of the country continues to develop, that must still be a factor in determining the break-even cost of its oil. Anything that makes it harder to get a pipeline built raises the costs of the oil. My understanding is that much of this oil is still delivered by rail car.


10 posted on 11/03/2015 11:08:22 AM PST by marron
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