Linc's 200":10v5mgvp said:
Oil is "kind of" free - you pump it out of the ground and it is ready to use, or be refined.
The "finding costs", on the last well program were something like :
Rig with crew - ~$15,000/day ( these were "shallow" wells -only about a mile down). Water - thousands of gallons a day. Trucked in - no idea how much $$, but NOT cheap! Deisel - ~600 gallons/ day ( to run 4-6 large turbo diesel engines) ~ $1,500/day. Other professional services ( myself, but one) ~$6,000/day.
That's very simpified, but we're at $22.5K/day (avg 7-10 days per well),= ROUGHLY $200,000.00, JUST to DRILL THE WELL!!!
and that hasn't taken into account costs for leasing the land, or paying the salaries of the guys who decided where to drill, or for their offices, their equipment, their expenses, etc.. add more & more $$$.
Then you MIGHT make a well, or might not. "Dry hole" costs get figured into the costs of producers.
If you DO make a well, then comes a miriad of pumping, storing, moving/shipping, refining, & distributing costs, before it can go into your tank. I'm sure there are a few costs I haven't thought of - but I think you can begin to get the point...
Oh yeah, one other little thing - Environmental remediation- $$$$$$$.
No offence, but it's NOWHERE NEAR free!!!
edit: Dude, you're from Texas! Why am I esplainin this to YOU!
