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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: BigBull who wrote (37695)	2/18/1999 1:30:00 AM
From: Razorbak	Read Replies (1) \| Respond to of 95453

Operating Costs, Not Lifecycle Costs <<But much remains to be done by the industry. Crine, an industry body, believes offshore life-cycle costs - including finding, development and operating costs - can be cut from $12 a barrel to $8 by 2002. In the early 1980s they were $22.>> There is a big difference between "lifecycle costs" (finding, developing, & operating costs) and just "operating costs". Apparently you missed the more relevant quote... <<The answer is not straightforward. Short term, there appears to be little danger of a collapse in output. Wood Mackenzie, the Edinburgh- based consultancy, believes about 93 per cent of output from the UK continental shelf would still be economic with an average oil price as low as $7 a barrel, well below the present range of $10-$12. It also predicts UK oil output this year will surge by 14 per cent to a record average of 2.99m barrels a day, as companies seek increased volumes to offset lower prices.>> Hope that helps. Razor