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To: Dog Gone

For starters labor, secondly the cost of drilling rights, third transportation costs, fourth taxes, fifth any drilling fees.

Would you like me to go on?


128 posted on 05/22/2008 10:09:24 AM PDT by Anonymous Rex ( For Rent)
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To: Anonymous Rex

Transportation costs will be higher, you have to get the equipment and workers to Africa and then the oil from Africa. Labor costs really won’t be any cheaper, sure the stuff you can use locals for will be cheap, but there’s a bunch of stuff you won’t be able to use locals for (like supervising) and you’ll have to pay them more since you’re making them move to Africa. Then there’s the problem that most of the African countries aren’t stable so you have the constant threat that tomorrow the revolution starts, so security costs are higher and you might lose control of the property and all that money goes down the drain. Then there’s the OPEC problem, even if there isn’t a revolution the country can always join OPEC and kick your company out.

In the long run domestic production is cheaper.


132 posted on 05/22/2008 10:16:50 AM PDT by boogerbear
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To: Anonymous Rex
For starters labor, secondly the cost of drilling rights, third transportation costs, fourth taxes, fifth any drilling fees.

Would you like me to go on?

No, because you're completely incorrect on everything you mentioned.

Just take labor, for starters. Do you think that oil companies hire villagers to run the drilling rig? Or do they fly Americans overseas to do that?

Never mind.

134 posted on 05/22/2008 10:40:47 AM PDT by Dog Gone
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