Possible Cap Raising?, page-47

you are probably not comparing apples with apples

in all resources companies there are tricks that are used to confuse people about how much money projects make

the most common one is to say 'costs of x are xx' - when the costs only reflect operational costs - not exploration, head office etc.

so a well might be 'cashflow positive at US 30 - but the oil company that runs it might not make any money unless oil is $60

you also need to keep in mind the US has shut in something like 70% of the wells it had running this time last year - so averages now are for the lowest cost biggest volume wells - and that wont stay that way for more than another year

still - prices of commodities actually have more to do with marginal supply and whether its a buyers or sellers market - than what the cost of production is.

so oil can keep going lower if volumes of oil stay healthy, oil buyers keep feelign they can buy lower - and their need to buy isnt urgent.