Friday, May 26, 2017

No more easy oil

An expert in energy told me that the average price was $35 for the last 70 years to contradict my predicted oil price. It is very misleading.

First, inflation is not considered. To illustrate, today it costs about $7 for a big Mac with fried and a drink. I remembered I paid about $1 for the same 35 years ago. Second all the easy oil has gone long time ago - those oil that does not need a lot of drilling.

Just for production, it will cost more than $35. It  means all the ocean-drilled oil and oil sand are not economically feasible at today's low price.

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