Homestead mailing list

[Don Bowen KI6DIU <don.bowen AT earthlink.net>]

At 9/21/2007, you wrote:
> But there are lots of
> areas with oil, the problem is the cost of extraction. Why spend the
> money if you can get it cheaper elsewhere.

There are two costs of extraction.  One is the dollar cost of exploration, 
drilling (some dry holes), well head, transportation, etc. Some of the more 
recent deep water finds may require oil to sell near $100 to break 
even.  The other is the energy cost.  If it costs one equivalent barrel of 
oil to extract one barrel then it is not worth extracting.



Don Bowen              Awl Knotted Up                       KI6DIU
http://www.braingarage.com