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Political Discussion
Reply to "$7/gallon gas is coming"
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[quote=Anonymous]The existing leases are a head fake. Oil is not a widget and standardization comes at the refinery. Economics are impacted by numerous factors and you have limited insight into the viability of any particular lease. The real problem is that drilling oil wells is capital intensive with the vast majority of the investment in an upfront cost. An oil well will produce for up to 30 years. Hard to justify spending money today on a project that has a 30 year payback period when everybody knows that many don’t want your product to exist in 30 years. [/quote]
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