The cost? For flowing crude, pretty much the same as it was when the price was $147.
The price? Rising for Germany, Spain, Japan, the UK and many other countries, in proportion to currency strength. For the US, price and USD are inverse relationships: as dollar drops, price goes up.
The reason for currency weakness does NOT have to be monetary. Canada has monetary stimulus and deficit spending, but CAD is gaining.
It's all relative.
Meanwhile, the present cost of a kilojoule (of flowing crude) hasn't changed. In fact, it may even have dropped slightly, as labor, shipping and material costs have retreated.
In coming decades the price AND cost of a kilojoule will increase dramatically. That effect will be felt by all countries, irrespective of currency strength.
Jim |
