[CarmichaelPatriot]

That cost may start coming down if the drillers can switch to powering their rigs with natural gas, as is being done in other places. It’s a big initial investment for the rig operators to switch their pumps, generators and trucks to NatGas, but with NatGas prices at an all time low now that payback is just a few years.

Also, as SD/ND/MT catch up on infrastructure (housing, etc.) the premiums being paid to woo employees should subside to some extent.

[Errant]

$10,000,000 (well cost) / 500,000 (total barrels produced) = $20.00 Barrel

Check out the newest shale deposit now being drilled:

http://ameliaresources.com/documents/tuscaloosatrend/Amelia%20Resources%20LLC%20TUSCALOOSA%20MARINE%20SHALE%20Play%20Overview%20MAR%202012.pdf

Estimates range from 3 to 7 billion barrels of recoverable oil plus natural gas in a area where a lot of infrastructure needed to get the oil and natural gas to market already exists!