The production graph that has been supplied not correlated with the price of the actual commodity being produced over that period. Information on long term oil prices can be obtained from the following link:
http://www.wtrg.com/prices.htm
In the period of peak production from these domes say 1947 to 1974 the oil price in 2010 $US was sub $20/barrel. In fact the average oil price since WWII averaged $US28.52 in 2010 dollars. The ongoing increase in oil prices to $US100 stated in 2001 after 9/11.
If someone is extracting oil at a sub $US20/barrel they are only going to take the easiest oil they can find.
If fraccing was around in those days they would not attempt to use this process as the oil price would have to be three to four times higher to make it feasible.
If they could extract easy oil and make a profit at $US20/barrel what would they have pulled at $US100+/barrel. Moreover, they had neither the geophysical techniques or even the economic incentive to seek deeper targets.
Keep the blinkers on.
FDM Price at posting:
60.0¢ Sentiment: Hold Disclosure: Held
