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By jason (registered) | Posted December 23, 2008 at 12:30:16
I think it's important to remind everyone that the cost of extracting oil today is higher than it was in the early days when one could stick a drill into the ground in the middle east and watch the oil shoot skyward. Refining costs also rise as lower quality product is extracted from harder-to-reach sources and 'bottoms' of fields that are slowly running dry. In other words, the cost to produce 62mbpd today is much higher than it was to produce 62 mbpd 20 years ago.
As an oil expert once said "when we start schlepping around a ton of sand just to find a barrel of oil, we'll know we're in the bottom of the ninth".
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