By the way, in the graph above, we are not provided the denominator for calculating the CAPEX costs for a bbl of oil. Over time, those CAPEX costs will come down immensely at the same time production capacity will be seen to increase.
One last point made by the reader who sent me the article: when one considers the shipping costs (Saudi oil to the US gulf coast) vs the pipeline costs (Permian crude oil to Houston), $5 Saudi oil might be at a competitive disadvantage to $8 Permian oil. Perhaps not a disadvantage, but certainly helps level the playing field.
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