Strictly: Drilling and oil-field services Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: The Ox who wrote (37514)	2/14/1999 2:27:00 PM
From: Razorbak	Read Replies (2) of 95453

Productivity Today vs. 1980's <<Ok, we know that the rig count is substantially lower. My question is how much more productive are today's rigs over those from the 80s? We know that technology has provided efficiency gains, can someone quantify those gains? Are today's rigs 4 times more efficient then those of the past?>> Michael: When comparing today's statistics to those from the 1980's, keep in mind the following key difference: 1) In 1980 the cost of finding, developing and extracting a barrel of oil was $11.00/barrel. 2) Last year, due to technology (e.g., 3-D seismic and directional drilling), the cost of finding, developing and extracting a barrel of oil was $5.50/barrel. The lower production cost basis of today relative to the 1980's is the primary reason why it is misleading to compare today's oil price chart with the chart from the 1980's and extrapolate the conclusion that we are on the verge of a major recovery in oil stocks and oil service stocks. IMHO, worldwide supply will not dry up as quickly with $10/barrel prices today as it did back in the 1980's. Razor

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next