Cost of OPEC to produce a barrel of oil...

[Voltron87]

[ QUOTE ]
Where is your $4 figure coming from? I highly doubt it is accurate.

[/ QUOTE ]

im pretty sure its accurate. however it doesnt factor in other economic costs, the fixed costs of research, building the oil rig/driller, the infrastructure to move the oil. but once thats all paid for it is not expensive to get more oil out of the ground.

and not all oil is created equal. some is next to impossible to get out of the ground. people have this idea that oil sits in lakes underground, but what actually happens is that is drained up out of rocks and solid ground, using pressure and drilling tools. some is easier to get out, there is a natural force, and in some cases it is extremely difficult and would cost more.

[morello]

[ QUOTE ]
[ QUOTE ]
Where is your $4 figure coming from? I highly doubt it is accurate.

[/ QUOTE ]

im pretty sure its accurate. however it doesnt factor in other economic costs, the fixed costs of research, building the oil rig/driller, the infrastructure to move the oil

[/ QUOTE ]

Then it can't be accurate!

It's like saying "Intel charges $100 for a processor when it costs 30 cents to make!" While that may be true, they spend millions on these "other" costs (mostly research).

Not including them is silly, especially in an argument that's trying to claim an enormous markup is being made.

[Kanchi]

Is this the year of peak oil [img]/images/graemlins/shocked.gif[/img]?

[Voltron87]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Where is your $4 figure coming from? I highly doubt it is accurate.

[/ QUOTE ]

im pretty sure its accurate. however it doesnt factor in other economic costs, the fixed costs of research, building the oil rig/driller, the infrastructure to move the oil

[/ QUOTE ]

Then it can't be accurate!

It's like saying "Intel charges $100 for a processor when it costs 30 cents to make!" While that may be true, they spend millions on these "other" costs (mostly research).

Not including them is silly, especially in an argument that's trying to claim an enormous markup is being made.

[/ QUOTE ]

well, it is accurate. right now, they oil refinery in question could produce another barrel for 4$. (or whatever the marginal cost of a new one is)

youre right, but in this case your wrong. when the fixed costs have been covered, then it really does cost 4$ for another barrel. and from an economic standpoint what the investment group who started the oil refinery paid to set it up is moot. kind of like dead money in the pot.

[krazyace5]

[ QUOTE ]
Where is your $4 figure coming from? I highly doubt it is accurate.

[/ QUOTE ]

Bill O Reilly said that figure on the factor.

[tonypaladino]

[ QUOTE ]
[ QUOTE ]
Where is your $4 figure coming from? I highly doubt it is accurate.

[/ QUOTE ]

Bill O Reilly said that figure on the factor.

[/ QUOTE ]

No Spin Baby

[Il_Mostro]

[ QUOTE ]
Is this the year of peak oil ?

[/ QUOTE ]
Probably not. Though ASPO now says it was last year. But there is a lot of mixed signals... Mike Lynch is claiming we will see an unprecedent build-up in production-capability the coming 10 years.
But he also said,a year ago, that oil would be 30$ by now, so who knows who to trust.

[Il_Mostro]

Sorta funny, but wildly inacurate. Oil is cheap cheap cheap.