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.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (136079)	6/24/2010 11:03:34 AM
From: tom pope	Read Replies (1) \| Respond to of 206326

yep.

To: CommanderCricket who wrote (136079)	6/24/2010 11:12:13 AM
From: not_prudent	Read Replies (2) \| Respond to of 206326

A couple or three years ago I remember reading that it (oil sands costs) were ~$30/bbl. In the past 2 - 3 years we're up to $50 - $70!! Even executive compensation doesn't account for this kind of jump. Are you sure of your numbers?

To: CommanderCricket who wrote (136079)	6/24/2010 11:26:47 AM
From: Eric	Read Replies (1) \| Respond to of 206326

The problem many have when looking at cost of production is much of the assets the major E&P's hold are legacy assets purchased decades ago. In my opinion, you have to look at are the costs for developing new acreage. In the oil sands, its somewhere between $50 - $70 bbl. Deep water is a little cheaper but that is changing fast. With those costs projected along with a reasonable return on investment will require $100 plus crude to attract capital. I've been concerned about all of the above for a number of years. Eric