by careinke » Tue 04 Nov 2014, 18:19:40
$this->bbcode_second_pass_quote('sparky', '.')
that's the baker problem in a famine
he bought flour and made bread , but the price of flour has risen
so he sell his bread for a much higher price
not to pay for what he bough but to pay for what he will have to buy to re stock .
the oil companies can make plenty of profit by running down their existing field ,
it's all paid for ,running cost are quite small .
the problem is getting new fields open , they cost even more and will crush their budget ,
Not to sound trite, but I thought profit included the entire cost cycle. So the new wells would not be included in the calculation.
I certainly see your point though, wonder if the new wells will also get a 25% profit. I'm guessing not.