To: Blood of Tyrants
So, does this mean the the real cost lies somewhere in between the cost of production and the spot market ?
Pump crude at $34 and sell it on the spot market for $70 ?
And it's different for each oil co. ?
Who's paying $70 ?
Are there any figures for how the increase in demand has forced more and more producers to the spot market ?
Is production up or down ?
Seems that the non-producers have obtained buyers willing to pay spot prices plus. (a riskless transaction)
As opposed to the risk of the exploration, production and delivery co's.
I remember when Dell Computer made more money in one particular quarter, (sometime in 1990 or 91) hedging foreign currencies than they did selling PC's.
Food for thought.
To: be4everfree
And it will be interesting to see if the halt to SPR deliveries will reverse the speculator-driven climb.
40 posted on
04/26/2006 7:26:45 PM PDT by
Gondring
(I'll give up my right to die when hell freezes over my dead body!)
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson