December 18, 2010

Marginal Cost of a Barrel of Oil

This illuminating graph shows how expensive it is to produce the last marginal barrel of oil, or rather barrel of oil equivalent, from such technologies as deep water drilling and tar sands. The graph was prepared in 2007 and, after the 2010 Deepwater Horizon disaster in the Gulf of Mexico, certainly understates the cost of deep water drilling.

No comments: