Update
Later, 2:25 p.m.: This is now a front-page headline, along with Facebook implosion, at Yahoo!Finance front page. The link is dynamic. Here's the AP story.
Original Post
The average Bakken/Three Forks well in North Dakota (some numbers rounded; see link for their data):
- costs $8 million
- will produce 540,000 bbls of oil
- will produce for 30 years
- net profit: $20 million
- in taxes: $4.5 million
- royalties: $7.5 million
I assume these numbers, if coming from the state, are conservative and based on USGS estimates of 4 billion bbls of recoverable oil. Some oil companies now estimate more than 24 billion bbls of recoverable oil from the Bakken Pool.
Sometimes....I think we just don't want the rest of the world to know just how much oil we really have...hence intentional media downplay lack of highlight
ReplyDeleteIt's easy for folks to have thought that -- but it's the market...
Delete