[quote=Arraya][quote=jficquette]They make money at $10/BBL back in the 70’s.[/quote]
Cost of extraction in Iraqi and Saudi Fields is approx $4 per barrel.
John[/quote]
Today ain’t the 70s. It used to cost 1 dollar a barrel back in the day. Iraqi fields are the cheapest and most unexplored, true. Saudi range from like 10-50 depending on the process, they are pretty much squeezed dry of all the easy to get stuff and peaked out.
Turns out, the more you suck out of the ground the more expensive it gets.
Another issue at 25 per barrel. Zero alternatives gets funded. It practically shuts down most companies. The markets is very stupid and shortsighted. It does not know best. The invisible hand is giving us the finger.[/quote]
The trick is you need an Oil Import tax.
Tax oil imported at $40/BBL, that provides a
hard floor for domestic production and it
provides a decent incentive for efficiency, and
it captures more of the price into our domestic
economy.
The problem is the Conservatives who squeal like
little girls at the word tax.
