As you note there has been one other period when oil prices rose above the $US40/barrel level during the Iran/Iraq war around 1980.
At that time there were still easier oil fields to exploit and this can be shown by the fall in oil prices over the next 20 years back to around $US30/barrel.
To indicate that the MAD field development is invalid because it was not done in 1980 seems an odd line of argument.
Changing prices change everything - FMG was a sub economic stranded lower grade deposit till iron ore prices validated the development. Many paper analysts proved that FMG could not work but Twiggy did it anyway.
I said you were blinkered because I thought you should consider the oil price impact on field economics/production as in any other area of mining.
FDM Price at posting:
60.0¢ Sentiment: Hold Disclosure: Held
