From: Don Bowen KI6DIU <don.bowen AT earthlink.net>
To: homestead AT lists.ibiblio.org
Subject: Re: [Homestead] Morning musing
Date: Fri, 21 Sep 2007 10:28:52 -0700
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.