Cost of Producing a Barrel of Oil Has Tripled Since 2003

http://www.theglobeandmail.com/servlet/story/LAC.20080320.IBEUROPE20/TPStory/Business

One aspect of the recent rise in oil prices that has been relatively overlooked is the skyrocketing cost of pumping oil out of the ground. According to this story, the price of producing a barrel of oil began rising in 2003 after being static for many years and is now three times higher.

Though the overall cost of production is still quite low (around $15), the 300% increase in just five years has grave implications carried forward. At this rate of increase, the cost of producing a barrel of oil will reach $130 in just ten years and that is BEFORE refining and shipping.

That is what Peak Oil is all about. It is not that we are (yet) running out of oil, it's that we are running out of CHEAP oil. And that is a very grave threat to our way of life.