“The age of plateau oil is also the age of price-sensitive oil. All the cheap, easy oil is gone.

The only question is how do we deal with that reality.

What are we willing to pay for? Generally $70 to $90 is the transition range. Below $90 a barrel some production becomes marginal. Below $80 you start to see decrease in production. And $70 is the floor.” Comment by Ray Leonard, president and CEO of Houston-based Hyperdynamics Corp.

Peak Oil doesn’t mean we have run out of oil. Quite the contrary: Planet Earth willnever run out of oil.

What Peak Oil means (and has always meant) is it will cost us more resources to produce the oil that’s leftover.

It’s all about accessibility. The more accessible a resource is, the cheaper it is to get. The less accessible, the more it will cost… pretty straightforward, if you ask me.

So, what’s happening today?

1) A fracked well (say, in the Bakken) is way more expensive than non-fracked wells. On average, each well in the Bakken costs between $7 to $10 million to drill.

…..read more of this extensive analysis by Brian Hicks – Energy & Capital HERE