Between a $6million going rate for offshore oil prospectus and almost a billion for oil rigs it appears that there's really no incentive to get moving on drilling offshore. It's a bit much to think that oil companies are that inspired to search for more oil where it will take them at least a decade to bring to fruition and the return on investment would be virtually nil unless the going rate for a barrel of oil at the time would be in the neighborhood of $500.
Try to imagine the costs involved if some 300 rigs were floating in coastal waters representing $300 billion in hardware, not to mention licenses and the upkeep for a decade before risky results. I would seem far more prudent to begin investing that kind of money in fuels of the future, or at least a massive investment in clean coal.
Copyright © 2008 Richard R. Kennedy All rights reserved. Revised: Aug 16, 2008.
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