Well, for one thing I am assuming that we are adjusting for inflation, etc. 2nd, I still stand behind my statement. Sure, it might cost $25 million to drill some deep-water well. 15 years ago, that same deep-water well wouldn't have been drilled at all because it would have cost too much. Since then, the techonology has improved. For example, the spar's developed my Kerr-Mcgee.
Sure, it might cost a lot to drill some directional well in the LA. Chalk. 15 years ago it wouldn't have been drilled at all because the technology wasn't there, and one would have had to drill a number of vertical wells to extract the same amount of oil.
The whole idea that oil and gas is sold 5 to 7 years out is in and of itself opposite of supply and demand. No one knows what supply and demand will be in 5 to 7 years. It's just speculation. It becomes a financial arrangement. Or it's a hedge to make an acquisition work. Or it's a hedge against the cost or producing electricity. Or it's just locking in a cost so that you aren't subject to price shifting, and so you company can pay steady dividends to stock holders. Or it's trying to unwind a position that was put in place 5 years ago, and now you don't have the supply because your platform is upside down in the gulf of mexico. ETC....
Oil and Gas price is determined by a LOT of things. INCLUDING but not limited to supply and demand.