Quote:
Originally Posted by Htown-Boliviano
Just because there is oil doesn't mean companies will start drilling. Companies take factors in to account such as the cost of transporting equipment and workers to the area, the terrain might be make drilling to costly, the demand must justify the high cost, and the cost benefit analysis of drilling in rough terrain. It's risky and quite drilling into hard terrain because you aren't certain that enough oil will be discovered to justify expenses. Computer can only do so much and many time there calculations are off. Right now I think the oil companies are probably waiting for demand to justify the expenses in drilling into rough terrain.
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At $140 (last time I checked so don't pounce on me if it changed) a barrel I think anything justfies drilling for that oil.
But I understand what you are saying. However, Canada's shael oil wasn't mined until recently because the cost-benefit wasn't favorable enough until oil started reaching about $50 a barrel. I hardly think land drilling can be that costly compared to deep-sea oil drilling, which has a much higher cost-benefit analysis.