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Sen. Walter Sobchak

(8,692 posts)

14. There is a lot of hot air built-in to unconventional costs

Reply to safeinOhio (Original post)

Thu Nov 27, 2014, 07:45 PM

Nov 2014

The costs associated with Canadian tar and American shale have a lot of hot air built-into them. From labor to equipment, everything is a bidding war and that cost inflation is an assumption built into the models as they exist.

Fracking isn't new.

As marginal producers fold and new investment is sapped the real break-even price should plunge.

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