[kjam22]

Yes it is true. Drilling costs are higher because the oil that is being drilled is a lot more difficult to get at. But, if we were drilling the same oil as we were 15 years ago, the costs would be less.

That's not true... because it still takes people. Their salaries are higher. The cost of equipment is higher. Federal regulations have added cost. Production equipment sitting on the well costs more. And on and on. You can't say it only costs more to drill because oil is more difficult to find. That's just not accurate.

[Rodney King]

That's not true... because it still takes people. Their salaries are higher. The cost of equipment is higher. Federal regulations have added cost. Production equipment sitting on the well costs more.

And yes, the cost of drilling has gone up dramatically in the last 2 years because of a shortage of engineers, equipment, etc. But smoothed out over the long term (we are in a bubble now), I stand by my statement that it costs less to drill now than it did before.