To: lowbridge
Using the most expensive oil is counterproductive.
Bernstein Research estimated that the non-Opec marginal cost of production - the cost of production for the most expensive new fields - rose to $104.50 a barrel in 2012, up more than 250% from $30 a barrel in 2002.
Using very expensive drillings helps oil to remain very expensive and helps OPEC to earn a lot of money.
For every $10 increase per barrel of oil price, OPEC's earnings soar by $100 billion per year.
Instead of using very expensive drillings in order to produce half a dozen million barrels of oil per day, it would be a better idea to save this oil.
Then, we could expect to see oil prices below $70.
To: Laurent.w
Instead of using very expensive drillings in order to produce half a dozen million barrels of oil per day, it would be a better idea to save this oil.
Then, we could expect to see oil prices below $70. Let me get this straight .. you're saying that not using very expensive drillings in order to produce half a dozen million barrels of oil per day ... which ipso facto reduces supply by half a dozen million barrels of oil per day ... would lower the cost of oil to below $70 per barrel..
You're either unclear about how supply and demand works or about simple math .. maybe both.
43 posted on
07/29/2013 5:49:04 AM PDT by
tx_eggman
(Liberalism is only possible in that moment when a man chooses Barabas over Christ.)
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