Silicon Investor (SI) -- The First Internet Community

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.

Politics : America Under Siege: The End of Innocence -- Ignore unavailable to you. Want to Upgrade?

To: DeplorableIrredeemableRedneck who wrote (9465)	11/1/2001 10:10:23 AM
From: Patrick Slevin	Read Replies (2) \| Respond to of 27666

There is probably very little overhead. The equipment is most likely fully depreciated and labor is probably marginal in cost.

To: DeplorableIrredeemableRedneck who wrote (9465)	11/1/2001 5:17:57 PM
From: Snowshoe	Respond to of 27666

>>I find that very $2.00 figure very hard to believe.<< My source is page 4 of the following article... Stuck in the Gulf: Could Central Asian oil, piped through a rebuilt Afghanistan, wean the West from the Mideast? Chances are slim. salon.com Radical cuts in demand, technology breakthroughs or the discovery of another Persian Gulf could rearrange the energy chessboard. But the amount of oil still untapped in the world -- and, more to the point, still remaining in the Persian Gulf -- makes it difficult to envision a scenario in which prices will rise enough to force the development of alternatives. No one with power over the matter -- not governments that import, oil companies, or the oil exporters -- wants to see prices go too high. Politicians gain from cheap oil because expensive energy leads to recession. Oil companies and exporters fear that high prices would encourage a shift away from their underground cash crop, and since the most expensive oil to produce costs about $15 -- which is about what it would cost to extract and transport Caspian oil, according to Jaffe -- a $20 barrel of oil is still a profitable barrel. Meanwhile, the best place to make a profit remains the Persian Gulf. It costs $15 to extract a barrel of oil in the U.S., but it costs less than $2 in Saudi Arabia.