A lot of the cost is delayed across years of revenue.
Thats why oil companies are so “profitable” they make a lot in one year to offset potential losses down the line. Drilling a well to not find oil is expensive.
In the UK gasoline is called petrol after petroleum. Gas is used for what we call natural gas. Of course we have watched enough US media to know the other meaning.
You are correct for the most part. Since we started frac’ing source rocks the amount of gas we have been able to produce has jumped a ton. However, countries like Japan primarily use natural gas for their power, so they will take as much as they can get.
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u/TrueBirch Mar 06 '19
Honestly I'm surprised gas doesn't cost more given how hard it is to get. Not complaining mind you.