Lore wrote:Costs will continue to escalate. For one thing, there is a vicious cycle where we're using cheaper energy, and products made from that, to extract expensive energy. As less of the former becomes available the latter will make the extraction cost untenable.
Drilling costs are actually dropping. Frack sand is being replaced with various shaped tiny ceramic sand, much cheaper than the natural stuff that has to be imported from wisonsin and minnesota. Drilling skills are to the point where well pads are being used over and over again. Rig counts are becoming manageable as supply infrastructure is developed and efforts become more focused on the long run. The big enemy of the producers is the EPA. They put upward pressure on costs with unecessary regulation, stalling tactics permit delays. They are a real threat and costing you a lot of money. Lets hope the coalition of the State of North Dakota and the producers can keep them at bay.
the president just delayed the decision on the keystone another 6 months but this issue is becoming secondary with new pipeline developments outside of federal control ongoing. Stopping the Keystone is a deliberate political effort to hamper oil production and is costing every consumer dearly. However, once the new pipelines are in place the oil will move more cheaply again bringing down costs in the face of federal efforts to drive them up.
Thats the real vicious cycle, not the imaginary "more energy to extract less energy" fairy tail.