Drumbeat: January 30, 2013

theoildrum.com 30 Jan '13, 2pm

Drumbeat: January 30, 2013

Again a potential case for sloppy language. Re: oil company profits down - “Even though Brent prices are up, so are the costs of producing that crude, and gas is a big drag”. I produce oil/NG for a living and the cost to do so has risen very little. But that’s the cost “to produce oil/NG”…not to drill for new oil/NG reserves. There are many companies spending less than $20/bbl to PRODUCE their wells so selling for $90/bbl creates a very nice positive cash flow. OTOH some of those wells with positive cash flows may never recover 100% of the monies spent to drill them. And some may return 5X what was spent to drill them. And at the company level? Some companies will recover 300% of their investment from their wells generating nice positive cash flows. And some companies will recover only 70% of the investment from their wells that are generating a nice positive cash flow. Ad...

Full article: http://www.theoildrum.com/node/9807

Tweets

@sawb3 » 30 Jan '13, 5pm
RT @TheOilDrum: Drumbeat: January 30, 2013 [link]
@GroenWerkt » 30 Jan '13, 3pm
#oildr Drumbeat: January 30, 2013 #mlfeeds: Record Profit Eludes Big Oil as Costs Outpace Brent Gain The world’s... [link]
@EnergySysNews » 30 Jan '13, 2pm
[oilbarrel] Drumbeat: January 30, 2013: Record Profit Eludes Big Oil as Costs Outpace Brent Gain The world’s big... [link]
@openib » 30 Jan '13, 2pm
Drumbeat: January 30, 2013: Record Profit Eludes Big Oil as Costs Outpace Brent Gain The world’s biggest... [link] #iSolar
@komaliaint » 30 Jan '13, 2pm
Drumbeat: January 30, 2013: Record Profit Eludes Big Oil as Costs Outpace Brent Gain The world’s biggest oil com... [link]
@bigpicturetv » 30 Jan '13, 2pm
The Oil Drum: Drumbeat: January 30, 2013: Record Profit Eludes Big Oil as Costs Outpace Brent Gain The world’s b... [link]
@nartured » 30 Jan '13, 3pm
Drumbeat: January 30, 2013 [link] #drumbeat
@jvogler » 30 Jan '13, 2pm
Drumbeat: January 30, 2013: Record Profit Eludes Big Oil as Costs Outpace Brent Gain The world’s biggest oil com... [link]
@WeBuyWasteOil » 30 Jan '13, 2pm
Drumbeat: January 30, 2013 [link] [link]
@TheOilDrum » 30 Jan '13, 2pm
Drumbeat: January 30, 2013 [link]